Replies to post #25082 on Intellipharmaceutics International Inc. (IPCI)

[fabius]

Wimus, option 1: cash in immediately and concentrate on the gems of the pipeline

[Tekterra]

I am not sure what's on management's minds. They did indicate wanting to be a manufacturer. And, we know US market is the main target for IPCI. naturally, it make sense to invest in manufacturing sites in the US. Transportation cost should not be looked at lightly if everything has to ship from Toronto.

Glucophage manufacturing and transportation/distribution cost can eat into the profit. Plus you mentioned IPCI probably can't produce the required quantity. It would make more sense for a well establish partner to produce and sell it in large quantities.

I am not sure about IPCI to distribute on their own. They would basically have to start a sales department to handle that.

Sales and advertisement is very costly, and I don't see IPCI can do something like that with their current financial situation. Plus Glucophage probably won't be able to generate enough revenue in the first few years to cover the cost involved in sales and advertisement.

A comparison with EGLT for example, they have a small sales force of under 100 people, and it takes them years to build that relationship with doctors and distributors. With ARYMO launch this month, they have 40 million in finance set aside just for ARYMO launch and advertisement cost for the next few years.

[Samsa]

Wim...I personally like your option number 2. I do not think they have the capabilities to produce that many pills without capital expanse. at which point do a PAR deal. let the partner produce and split the profits.

they could just outright sell and throw Keppra in for the mix but that would only be a resort if they need cash. otherwise why give up on the source of income? and assuming they can partner Rexista, I do not see them needing the cash for anything. any upfront monies from that should be able to fund their needs for studies and the MNK deal funds their needs to get machines so I think they will just sit on it until they can find a partner. hence it may be a while.

which is why I said before, if the company does not have irons in the fire to market these other drugs why keep them active? they are paying how much a year just in filing fees. they have Keppra approved for a year now and no takers. if they do not have a plan to be able to capitalize on them they could or should just abandon them. otherwise we just end up paying out bonuses and these approvals just cost us money.

But I am trying ti give them the time here.