Copy of a post I just made on another board: Pr
Post# of 72440
(Total Views: 388)
Posted On: 11/18/2018 2:06:07 PM
Copy of a post I just made on another board:
Probably the most critical issue for shareholders, or those considering becoming shareholders, is the actual value of the current pipeline. The gamut runs from those that stress that the currently low share price makes the value to a BP minimal and a maximum share price of a dollar or two is the max one should expect to those that believe there is absolutely no connection between the current share price and the inherent value of the pipeline, thus the future value could rise to significantly high double digits or even triple digits.
My belief is with the latter, that the current share price has no bearing whatsoever in the total valuation of IPIX and it's pipeline. It may be a factor in the first partnership (B-OM/IBD) due to the current cash position of the company but the overall full pipeline remains extremely valuable.
I support my contention because I see a biotech startup to be closely aligned with companies that drill for oil, gas, minerals, etc. The wildcatters are limited by the acreage they are able to procure for their drilling efforts and their total value based on the mineralization within that acreage. As the assays prove the strike larger in size and depth, the value increases. Most drilling is for one specific product (gold, copper, oil, natural gas, lithium, titanium, diamonds, etc) and should the assays show a wide ranging amount of other valuable prospects the value goes up quite rapidly. For a startup driller/miner, the costs of development (assays, environmental studies, roads, operational costs, transportation costs to get product to market, other governmental approvals, etc, etc) are usually prohibitive and they must partner with larger companies and for world class finds they must seek out world class mining companies. One example of how a small outfit can go from rags to riches can be researched by browsing The Pebble Project, a mining development southwest of Anchorage and is the largest undeveloped copper and gold resource in the world. It has been working with the govt for nearly 20 years to try and get the project going and yet preserve the environment and possible tainting of waters that support the largest salmon resources in the world. This project has 57 Billion lbs of copper, 71 Million oz of gold, 3.4 Billion lbs of molybdenum, and 345 Million oz of silver. It is in an uninhabited area with fairly flat ground and no permafrost, an ideal place for open pit mining. Yet after 20 yrs there is no guarantee the project will ever get governmental approval. I gave the numbers above so you can estimate the overall value of the project (remember that the strike keeps growing in size, and thus value, to this day). Estimate what you think it is trading at today (I will tell you at the end of this post), what you feel the potential value is once it gets approval for development, and what percentage of revenues the landholders should be allowed to keep from the large mining partner. Remember, this is the LARGEST UNDEVELOPED PROPERTY IN THE WORLD. How many extremely large mining opportunities do you think are left in the world today to compare to this project? Do you think ALL world class mining companies are going to try and screw the landholders in allotting them a ridiculously low percentage of revenues? Can they afford to walk away from such a large opportunity? As you can see, almost an identical situation that IPIX is in today but in the biotech arena.
IPIX stock price is abysmal, our assets (pipeline) seeming to have unbound potential as we have a myriad of indications to attack with our 3 products, we need to partner with a large BP to bring our products to commercialization and to get proper marketing, we are under the thumb of govt to be able to bring our products to market, etc, etc.
Now ask yourself the same questions of IPIX that I asked of you in the prior paragraph regarding the mining company. Pretty analogous situations IMO.
I believe in both cases there is an extremely strong case to be made that the big boys know they cannot screw over the owners of the land or the drugs to a point that they lose the opportunity to participate in the enormous potential revenues that appear to have a high degree of coming to be in the years ahead.
The mining stock now at $ .68.
Probably the most critical issue for shareholders, or those considering becoming shareholders, is the actual value of the current pipeline. The gamut runs from those that stress that the currently low share price makes the value to a BP minimal and a maximum share price of a dollar or two is the max one should expect to those that believe there is absolutely no connection between the current share price and the inherent value of the pipeline, thus the future value could rise to significantly high double digits or even triple digits.
My belief is with the latter, that the current share price has no bearing whatsoever in the total valuation of IPIX and it's pipeline. It may be a factor in the first partnership (B-OM/IBD) due to the current cash position of the company but the overall full pipeline remains extremely valuable.
I support my contention because I see a biotech startup to be closely aligned with companies that drill for oil, gas, minerals, etc. The wildcatters are limited by the acreage they are able to procure for their drilling efforts and their total value based on the mineralization within that acreage. As the assays prove the strike larger in size and depth, the value increases. Most drilling is for one specific product (gold, copper, oil, natural gas, lithium, titanium, diamonds, etc) and should the assays show a wide ranging amount of other valuable prospects the value goes up quite rapidly. For a startup driller/miner, the costs of development (assays, environmental studies, roads, operational costs, transportation costs to get product to market, other governmental approvals, etc, etc) are usually prohibitive and they must partner with larger companies and for world class finds they must seek out world class mining companies. One example of how a small outfit can go from rags to riches can be researched by browsing The Pebble Project, a mining development southwest of Anchorage and is the largest undeveloped copper and gold resource in the world. It has been working with the govt for nearly 20 years to try and get the project going and yet preserve the environment and possible tainting of waters that support the largest salmon resources in the world. This project has 57 Billion lbs of copper, 71 Million oz of gold, 3.4 Billion lbs of molybdenum, and 345 Million oz of silver. It is in an uninhabited area with fairly flat ground and no permafrost, an ideal place for open pit mining. Yet after 20 yrs there is no guarantee the project will ever get governmental approval. I gave the numbers above so you can estimate the overall value of the project (remember that the strike keeps growing in size, and thus value, to this day). Estimate what you think it is trading at today (I will tell you at the end of this post), what you feel the potential value is once it gets approval for development, and what percentage of revenues the landholders should be allowed to keep from the large mining partner. Remember, this is the LARGEST UNDEVELOPED PROPERTY IN THE WORLD. How many extremely large mining opportunities do you think are left in the world today to compare to this project? Do you think ALL world class mining companies are going to try and screw the landholders in allotting them a ridiculously low percentage of revenues? Can they afford to walk away from such a large opportunity? As you can see, almost an identical situation that IPIX is in today but in the biotech arena.
IPIX stock price is abysmal, our assets (pipeline) seeming to have unbound potential as we have a myriad of indications to attack with our 3 products, we need to partner with a large BP to bring our products to commercialization and to get proper marketing, we are under the thumb of govt to be able to bring our products to market, etc, etc.
Now ask yourself the same questions of IPIX that I asked of you in the prior paragraph regarding the mining company. Pretty analogous situations IMO.
I believe in both cases there is an extremely strong case to be made that the big boys know they cannot screw over the owners of the land or the drugs to a point that they lose the opportunity to participate in the enormous potential revenues that appear to have a high degree of coming to be in the years ahead.
The mining stock now at $ .68.
(9)
(0)Innovation Pharmaceuticals Inc (IPIX) Stock Research Links
Scroll down for more posts ▼