Let’s take our IPIX hats off for a moment and

Let’s take our IPIX hats off for a moment and put on our Big Pharma M&A hat. If you were the CEO of Big Pharma X (BPX) and one of your Business Development/M&A guys comes in the board room with the following proposal what would you do? “We have an opportunity in the OM market to capture $600M to $1.2B annually with great growth potential with a Phase 3 ready Preventative drug called Brilacidin. After royalties BPX would attain 85% of the above revenue after paying only 15% in Royalty payments. This would add annual net revenue of $510M to $960M in the first year for that single indication. This drug also fits in perfectly with our objective to grow our presence in our Oncology Division. We can lock up exclusive rights for this drug on this specific indication for only $100M in upfront cash. There are also other multi-billion dollar indications that this drug addresses including the IBD, ABSSI and dermatitis markets using this same antibiotic with anti-inflammation benefits. I believe for an additional $100M upfront we could lock up this Franchise drug for ALL indications and have world-wide exclusive rights that will produce a multi-billion dollar revenue stream annually for a one time investment of only $200M in development capital. The company that owns the rights to this product IPIX want additional milestone payments as indications successfully pass phase 3 studies but those payments would be risk free to us at that point in time. Our technical team believes there is an 90% + chance of a successful phase 3 B-OM if we assign a couple of our top Clinical and Project Managers on this phase 3 study.“

If I was the CEO I would clarify this proposal and evaluate it from a net/net perspective like all good CEO’s do. “So for a $200M upfront investment we can secure worldwide rights and add a franchise drug to our portfolio that brings in at least a half billion dollars in net revenue year 1 and possibly upwards of $3B annually by year 3 or 4 with multiple indications? Make sure you lock this deal down before our competitors get us into a bidding war. Nice work Captain Obvious.”