Replies to post #222932 on Innovation Pharmaceuticals Inc (IPIX)

[BonelessCat]

Prurisol results might also hold up a license if the plan is to use good P results to leverage upfront and milestone payments for funding advancement of the Brilacidin franchise into Phase 3 before striking a deal later for that much more lucrative platform.

[frrol]

Yes, I wrote "partnership for B". A buyout would be less contingent on B BTD.

[frrol]

And yes no buyout is likely until P results. That is a very big potential value factor.

One thing about buyouts: aside from the PV estimate, a minor consideration is share price history. Target company managements tend to push for a price that is higher than "recent" share price high. It acts like a deal floor, though in no way a hard floor. In the negotiations, if that high is within the PV range, the target would try to anchor the price negotiation there. Eg, "Offer our SP high plus 20%". That would be around $6, which is about $1B fully diluted.

Incidentally, the flip side also must be acknowledged: in some circumstances the acquirer would try to anchor that price as a ceiling. "Hey, we're offering you 20% above what any of your shareholders might have paid".

Anyway this is a very minor point and idle talk. By far the major factor is estimated PV. Everything starts from there.