Today’s announcement is an outstanding milestone achievement and it validates investor’s confidence in IPIX. As I have mentioned in the past a successful biotech must have 3 key elements or using the 3 legged stool analogy: 1) Good science 2) Financial Resources (money) 3) Strong Management team that can direct #1 AND #2.
1) Science- The FDA itself has validated Brilacidin in multiple phase2 trials for multiple instances but nothing validates science better than a global pharmaceutical willing to write a nice big fat check. Most assumed B-OM would be the first deal and still COULD be but this announcement is a Term Sheet for B-IBD in a market that is projected to be $48B in a couple years. IPIX could get a small chunk of this gigantic market and still bring in BILLIONS in royalty revenues ANNUALLY. B-IBD was thought of as a 2nd instance for Brilacidin but at least 1 Big Pharma doesn’t see it that way. This announcement validates Brilacidin as a FRANCHISE drug that will bring in multiple revenue streams from multiple instances. As an IPIX shareholder you not only own a piece of Brilacidin which will produce multi billions in revenue and hundreds of millions in profits but you also own a piece of Kevetrin which continues to progress and could easily catapult IPIX SP to 3 DIGITS if it makes it to a market that is in desperate need for new cancer treatment technology.
2) Financial Resources- The biggest Achilles for most pre-revenue biotech is funding. FDA trials are very expensive and it is difficult to bring products to market without major dilution of shares. Once this term sheet becomes finalized dilution will come to an end. As of a few days ago IPIX had 192M shares outstanding which is an insignificant amount of shares for a company that has a MULTI-INSTANCE Phase 3 ready drug addressing MULTI-BILLION DOLLAR MARKETS. The recent $2.5M MFO funding is a safety net that a very frugal CEO put in place and we now know that IPIX is very close to finalizing at least one specific source for non-dilutive funding going forward. Once this Term Sheet is finalized the funding will halt all future dillion and will fully fund a much more aggressive approach to science progression. Every $13M or so in upfront money represents a year’s worth of current funding needs and we could easily see enough up-front cash to fund multiple years at a much faster pace of science progression. IPIX is also only a year or slightly more away from royalty revenue on one or more Brilacidin instances which will instantly convert IPIX from a pre-revenue biotech to a royalty based earnings monster.
3) Strong Management Team - Hats off to Leo and Dr. Bertolino. They have done a remarkable job of advancing the science on a shoe-string budget and have masterfully managed balancing out #1 and #2 above. Think about what they will be able to do going forward with a large cash infusion once this Term Sheet is finalized and funding is no longer an issue.
IPIX shareholders should remember that normal market supply/demand is not currently in place. The reality is that NSS has been and still is in control of IPIX share price. The more we focus on milestones such as today the better we can properly position any exit strategies. The wise thing to do IMO is to divorce ourselves from day to day share price and look forward to future milestone achievement which will increasingly move our company’s SP to a more fairly monetized value as NSS continue to lose their control over our company. This progression will take place as IPIX finalizes Royalty deals, advances through multiple Phase3 trials, Up Lists to a legitimate exchange and ultimately reaps the rewards of multiple royalty revenue streams. In the meantime hold on tightly to your severely but only temporarily undervalued shares and buy more if you can.
1) Science- The FDA itself has validated Brilacidin in multiple phase2 trials for multiple instances but nothing validates science better than a global pharmaceutical willing to write a nice big fat check. Most assumed B-OM would be the first deal and still COULD be but this announcement is a Term Sheet for B-IBD in a market that is projected to be $48B in a couple years. IPIX could get a small chunk of this gigantic market and still bring in BILLIONS in royalty revenues ANNUALLY. B-IBD was thought of as a 2nd instance for Brilacidin but at least 1 Big Pharma doesn’t see it that way. This announcement validates Brilacidin as a FRANCHISE drug that will bring in multiple revenue streams from multiple instances. As an IPIX shareholder you not only own a piece of Brilacidin which will produce multi billions in revenue and hundreds of millions in profits but you also own a piece of Kevetrin which continues to progress and could easily catapult IPIX SP to 3 DIGITS if it makes it to a market that is in desperate need for new cancer treatment technology.
2) Financial Resources- The biggest Achilles for most pre-revenue biotech is funding. FDA trials are very expensive and it is difficult to bring products to market without major dilution of shares. Once this term sheet becomes finalized dilution will come to an end. As of a few days ago IPIX had 192M shares outstanding which is an insignificant amount of shares for a company that has a MULTI-INSTANCE Phase 3 ready drug addressing MULTI-BILLION DOLLAR MARKETS. The recent $2.5M MFO funding is a safety net that a very frugal CEO put in place and we now know that IPIX is very close to finalizing at least one specific source for non-dilutive funding going forward. Once this Term Sheet is finalized the funding will halt all future dillion and will fully fund a much more aggressive approach to science progression. Every $13M or so in upfront money represents a year’s worth of current funding needs and we could easily see enough up-front cash to fund multiple years at a much faster pace of science progression. IPIX is also only a year or slightly more away from royalty revenue on one or more Brilacidin instances which will instantly convert IPIX from a pre-revenue biotech to a royalty based earnings monster.
3) Strong Management Team - Hats off to Leo and Dr. Bertolino. They have done a remarkable job of advancing the science on a shoe-string budget and have masterfully managed balancing out #1 and #2 above. Think about what they will be able to do going forward with a large cash infusion once this Term Sheet is finalized and funding is no longer an issue.
IPIX shareholders should remember that normal market supply/demand is not currently in place. The reality is that NSS has been and still is in control of IPIX share price. The more we focus on milestones such as today the better we can properly position any exit strategies. The wise thing to do IMO is to divorce ourselves from day to day share price and look forward to future milestone achievement which will increasingly move our company’s SP to a more fairly monetized value as NSS continue to lose their control over our company. This progression will take place as IPIX finalizes Royalty deals, advances through multiple Phase3 trials, Up Lists to a legitimate exchange and ultimately reaps the rewards of multiple royalty revenue streams. In the meantime hold on tightly to your severely but only temporarily undervalued shares and buy more if you can.
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