Below is the post I made on IHUB that Boo referred
Post# of 72440
All longs have been hit with the question "If IPIX's pipeline is such a pharmaceutical powerhouse, why is the share price way under $1? It is a very good question and one that I now answer as such:
A startup biotech is a lot like a caterpillar that one day transforms into a beautiful butterfly. Not many people upon seeing a caterpillar start gushing over it as the prelude to a fragile, mesmerizing beauty of nature. All they see is a gross, hairy blob of mass moving like a sumo wrestler on ice skates with no redeeming features that would put it in a good light. It is as though the majority of people do not have the vision or the belief that the caterpillar will reach the butterfly state as so many try and so few succeed. Rational decision, thus the biotech during this stage only attracts a very few believers that follow butterflies closely and do a lot of research on the probability that a particular caterpillar has the right stuff to make it to the butterfly stage. Results are very little investment and the company barely survives due to major threats from the rigors from within and without. Those within are the natural hazards finding just the right mix to allow the caterpillar body to morph into a butterfly. The hazards without are the constant attacks on the caterpillar due to toxic financing, shorts that want it destroyed for their own benefit, and other such external hazards.
The first stage of development is akin to a caterpillar in that the biotech is in the stage of developing a drug, putting it thru pre-clinical trials,and doing the heavy lifting of getting the drug ready to be accepted by the FDA for clinical trials. Nothing pretty about it, nothing redeeming in value, just a blob of ideas trying to come together in a cohesive manner that shows promise of value down the line. At this stage, it is simply a mass of expenses that makes the value of the company near 0 at best.
The second stage of development are the clinical trials, especially phase I and phase II trials, that prove to the FDA that the drug has merit to continue being researched to find it's safety and efficacy factors and whether these are beneficial to the world of medicine compared to what is currently available to patients. This stage mirrors that of the caterpillar constructing a cocoon and transforming itself by digesting its tissues and reconstructing them in a new form, that of the butterfly, unrecognizable to its prior state of being a caterpillar. As the clincial trials evolve, the caterpillar is slowly jelling into its final form and as such slowly gaining value during the entire process as the butterfly becomes more and more pronounced during the morphing during the stage. Again, though, most people only seem to be able to see the cocoon and it looks just like it did when the caterpillar entered so to them it is not ready yet to think of the new being as having a lot of value and so the low share price and low investment continue.
The final stage is the new and beautiful butterfly breaking free of the cocoon, taking time to dry its wings and get its legs underneath itself, preparing to enter the sunlight, and allowing everyone to see that it is no longer hideous but a thing of beauty, with great value as such. For the biotech, this is the period after phase II after it has passed its most rigorous tests. Those that love butterflies now crowd around and bid to see which will get to take the new creature of beauty and great value home to join their collection of other butterflies. Now is the time money starts flowing into the startup as the drug(s) have morphed from wannabes into true deliverers of life-giving or pain-relieving results to people worldwide. Now the value of the butterfly is the only thing that matters, what it was while in the earlier caterpillar state is meaningless as that is no longer reality, reality is now only the butterfly.
We are a few weeks from the last of our drugs breaking out of its cocoon and IPIX has said some or all of its products will be on the market to change IPIX from a financial pauper to a financial powerhouse. The major butterfly collectors (BPs to the startup) will gather as our beauties are being heralded as those that only come rarely and as such are worth vast amounts.
Everyone can choose what they want to dwell on, the hideous caterpillar or the beautiful butterfly. External threats want to destroy the butterfly, but it is now as powerful as it is beautiful and they will quickly learn their threats are now meaningless.