Replies to post #240674 on Innovation Pharmaceuticals Inc (IPIX)

[frrol]

We got $2MM and our monthly burn is about $700K. Was higher.

[Here Today]

How about using some of that money to pay for LAWYER fees since for anyone who has had any dealings with a Term Sheet or partnership, the Term Sheet just has all the items that both parties want. The "Legal Eagles" and "Bean Counters" then need to verify that:

A) Their own companies Best Interest are protected with this upcoming deal/arrangement and that the info provided by the Company they are looking to deal with is accurate

B) What's the Payback on Capital Investment as well as length of Exclusivity, Margin Factor (at this point would be best guess based off of production and distribution channel estimates and market for products).

Normally for Big Corporations, the "Higher Ups" always want the Capital Expenditure to be within 10 - 15% from the original estimates more or less. Always best when under budget estimates, but sometimes (as we now know about the P trial) cost overruns do occur.

[PlentyParanoid]

I seems the bill for P results keeps ballooning, thanks to task basis for billing. CRO gives an cost estimate for a task --> IPIX attempts to scrap monies together and may even succeed, barely --> CRO bill arrives with sizable overrun. Put any over bantamweight pharma in place of IPIX and this CROw would be dead bird in water, but this CROw does know IPIX is flyweight. So, round we go, and go ...

In defence of the said CROw.The birthplace of this mess is at IPIX offices. ffrol's notion that cancelled interim was the first indication of a mess agrees well with my thinking.

How to create a clinical trial money pit in 10 steps or less:
1. Start a clinical trial and try to manage it with your own resources, which are far too small for the task.
2. Wait until mid enrollment before you admit that you are way too deep in manure
3. Call help - contract a CRO.

[narrative interlude starts]
timewise about here is the first indication in IPIX filings about any involvement of a contract research organization
[narrative interlude ends]

4. Because of the difficulties in estimating the cost for fixing the mess CRO will sensibly take the job only with per completed task billing.
5. Also sensibly CRO first concentrates fixing the clinical trial process and the data mess from early enrollment is left mostly as it is.
6. No interim report because there is no reliable early data available for interim report.
7. Clinical trial run ends.
8. CRO attacks the data mess from early trial stages.
9. Time and cost overruns ensue or "Look, it's a money pit".