Replies to post #244213 on Innovation Pharmaceuticals Inc (IPIX)

[poonch1ne]

A good move by Leo as a negotiating ploy telling potential partners not to low ball or we'll do it ourselves. Leo wants a partner and a deal that commands respect, and as he stated, shareholder value is top priority. Good wheeling and dealing by Leo as partnering may be coming down to the wire.

[frrol]

That's what the selling is about. The market is bothered by "Brilacidin for OM" being mentioned and not IBD, and "advancing Brilacidin into a pivotal study" is therefore a B-OM Phase 3, and thinking it means we're confident the FDA will let us advance B-OM (that's good, but not really a surprise) but also that we're paying for it ourselves (which is a very bad surprise).

Either Leo carelessly misworded the PR or the partnership fell through. The optimistic explanation: our need for this cash was so bad (for opex, trial prep, etc.) that without it we wouldn't be able to complete the partnership negotiations so that B-OM could continue development, and Leo just carelessly forgot to mention B-IBD.

Here's to hoping Leo was just being careless in his wording :-)

[sox040713]

First of all, I don’t think $10M is enough for B-OM Phase 3 and operating expenses. If the deal is off as you suggested, Leo would’ve asked for more.

Second, Leo clearly said the money will be used to meet near-term goals (plural). In case you forgot, they are:

Near-term strategic clinical priorities remain: to work closely with the FDA and other regulatory authorities to align on the remaining development plan necessary for Brilacidin in Oral Mucositis; to analyze the Prurisol Phase 2b data in Psoriasis; and, as additional funding becomes available, to commence work on new product formulations—1) an oral pill for Kevetrin in Ovarian Cancer; 2) an oral pill for Brilacidin in IBD; and a topical application for Brilacidin in Atopic Dermatitis and Acne.

http://www.ipharminc.com/press-release/2018/9/20/innovation-pharmaceuticals-provides-corporate-update-highlighting-upcoming-milestones-and-events

B-OM Phase 3 being mentioned because that’s the top priority. Money used to pay lawyers to close a deal after the DD period (usually 90 days) certainly qualifies as “advancing Brilacidin into a pivotal study”.

Leo actually raised ~$2M today, not $10M. ~$2M was the operating expense in Q3 and is probably the same in Q4. Earlier you said a deal is 90% (post 244129), now you said it’s off. Which one is it?

So no one should expect any strategic investment with a partnership, we wouldn't have raised $10MM if that were part of the partnership deal because we wouldn't have needed it.