Replies to post #22303 on Innovation Pharmaceuticals Inc (IPIX)

[TheProgressive]

Speaking of doing the math....timely and relevant post. Kind of hard to process in a way, lol.

[MinnieM]

Now, those are head spinning numbers that may well induce a large buyout price. I'd be happy with a 50% discount from your projected values. lol

I've kept the post. ;)

[58nout]

Rule, I loved your analysis. Simple, clean and elegant. I do believe that it could happen. I will also settle for two other things. One, 10 billion in revenue and $400 a share along with a huge advance in the treatment of cancer and psoriasis. The latter is going to to happen, I just hope that it's in my lifetime. I also hope that it's Cellceutix. Great job!

[rule_rationale]

Since my prior valuation in January of 2013 (below), revenue multiples by sector data has been updated: Price/Sales of Biotech is now at 10.27 and Cellceutix has added significantly to their pipeline.

Brilacidin, Kevetrin, Prurisol - lets keep it at $20 Billion to be conservative ;-). Outstanding shares really haven't taken a huge hit due to the brilliance of our management - I'll assume 170M in a few years.

pps=10.27*$20B/170M = $1208.24

Yep, CTIX is going to need to forward split a couple times.

Since we're all speculating - here are my scary numbers:

first look here for industry values

http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/psdata.html

Biotech Price per Revenue per Share (P/S) is 6.01 average as of Jan 2013.

Now we must make a BIG assumption, but lets make that assumption of revenue for curing cancer,psoriasis,etc. to be equal to $20B annually. We also must assume the fully diluted share count, let's say about 150M - I think everyone can agree that is close from prior discussions.

Now for the math:

6.01 = pps/(Revenue/Outstanding shares), or pps= 6.01*Revenue/Outstanding shares

pps=6.01*$20B/150M= $801.33

Now that is far in the future if Cellceutix were to get all the way through studies and then take market share, and develope to $20 Billion in Revenue... it could happen...

$800 WOW

Let me know if there are any gross errors in there.