350 patient phase 3 started in Nov 2015 so they are probably fairly far along.
20M upfront + 43M milestones to approval + $230M in sales milestones + tiered double digit royalties.
Any idea what size market this deal is based on Boo? 72 million procedures a year is all I see regarding the commercial opportunity on the company website. It seems like they're giving up a lot considering they're halfway through phase 3 if it's not a sub-billion dollar market.
Also, this appears to be a reformulation of an anesthetic discovered in 1957. A time-released gel if I understand correctly so perhaps the market is for the delivery system/formulation and is worth less than a novel drug.
So if we can put a pin on that market opportunity it will put things in better perspective. If the TAM is $400M/year this is a pretty nice deal. If it's $2B/year it may not be so hot.
20M upfront + 43M milestones to approval + $230M in sales milestones + tiered double digit royalties.
Any idea what size market this deal is based on Boo? 72 million procedures a year is all I see regarding the commercial opportunity on the company website. It seems like they're giving up a lot considering they're halfway through phase 3 if it's not a sub-billion dollar market.
Also, this appears to be a reformulation of an anesthetic discovered in 1957. A time-released gel if I understand correctly so perhaps the market is for the delivery system/formulation and is worth less than a novel drug.
So if we can put a pin on that market opportunity it will put things in better perspective. If the TAM is $400M/year this is a pretty nice deal. If it's $2B/year it may not be so hot.
Innovation Pharmaceuticals Inc (IPIX) Stock Research Links
All my posts are my own personal opinion and speculation. They should not be used as the basis for any investment decision. No, I am not Scottsmith.