I have a theory as to why they aggressively produced inventory and continue to do so. It seems from the wording that they are negotiating deferred payment for distribution and I think this is possible because they are using the inventory value as an asset to ensure payment. The cost to produce the drug is a fraction of its end use value so they are basically taking the investment and multiplying its size and value by building an inventory. The amount of upfront payment they get is based on the value of the inventory, not its cost to produce. If we just sat on the cash raised and used it for trials there is no value until product is sold, with inventory the product has value now, assuming fda approval. The increase in the selling price of the drug supports this.
I was also not aware that this 700mg safety acceptance was even part of the discussion with the fda. I thought the safety arm was done. It is good news and will pay off in future indications for sure but it is not the mono trial protocol approved type pr. I think I’m being a little negative about this but it seems like this is a slow grind progress with new steps of accomplishments instead of the accomplishments we have been hoping for.