Replies to post #355465 on Innovation Pharmaceuticals Inc (IPIX)

[unstable genious 1]

kitty cat ?

[Lemoncat]

You don't seem that familiar with the B-UP Deal.

Upfront:

$420K

Regulatory milestones:

$1M starting Phase 3
$1M finishing phase 3
$1M submitting NDA
$3M NDA approval

Sales milestones:

$3M for hitting $100M in sales
$6M for hitting $200M in sales
$9M for hitting $300M in sales

Royalties:

6% royalty, possibly 2% if AS uses their own formulation (which they just ran a phase 1 for).

We get almost nothing in any time frame that matters:

$420K in mid 2019
$1M in 2023 (maybe)
$1M in 2024 (maybe)
$1M in 2025 (maybe)
$1M in 2026 (maybe)

2% royalty + sales milestones if they ever get hit. (2026+)

Almost two years later AS has completed a phase 1 with a new formulation which knocks our royalty down to ~2%. Additionally, that entire program will likely be put on hold if B-UC oral makes any progress at all. The 10s of millions of research you cite will hopefully be made obsolete by the B-UC pill.

It was a horrid deal because it did not help alleviate any of our financial problems nor did it give us any credibility amidst the Prurisol failure. In fact, the terms of that deal were so demoralizingly bad it was probably worse than not doing one as it taints the markets expectations about what we can get for a $100M+/year indication.

If it was a good deal we wouldn't have had to sell half the company to raise ~$30M to cover 2020 and 2021 expenses.

Go IPIX!