The following is simply an example of how valuable
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Posted On: 04/09/2020 4:30:55 PM
The following is simply an example of how valuable the market potential is for COVID-19 (CV19) vaccine development and treatments. Like most examples there are always many apples to oranges issues but using this analogy they still are both fruits.
The example is Pfizer’s partnership with BioNTech (BNTX) to develop a CV19 vaccine. BNTX is a biotech that has developed an RNA based technology. It appears they have several partnerships in the works with the recent Pfizer 3/17/20 deal by far their largest. As far as I could determine BNTX does not have any FDA trials beyond Phase 1 at this point.
I understand that BNTX’s product and approach are completely different than IPIX’s Brilacidin and that they are focused on developing a vaccine whereas it is yet to be seen if Brilacidin is used as a treatment or as part of a vaccine development for CV19. The point of comparison is to show what Big Pharma is willing to spend with smaller Biotech companies to combat CV19 and the effect these BP partnerships can have on the valuation of their smaller biotech partners.
Pfizer is paying BNTX $185M upfront ($72M cash/ $113M equity) with an additional $563M in milestone payments. I used Yahoo Finance #s which may not be up to the minute but are consistent for comparison purposes and valuations.
BNTX - SP $46 dollars/ OS 227M/ MC 10.6B
IPIX – SP 10.6 cents/ OS 230M/ MC 24.5M
Note that the Outstanding Share count is similar. Am I claiming that IPIX SP should be at $46/share or that IPIX is undervalued by a factor of over a 400 multiple? No, but what I am saying is that a BP partnership deal or a Government grant that would accelerate Brilacidin through Phase 3 trials could catapult IPIX SP into multiple dollars very quickly. There are many BP’s and Government agencies working towards both vaccines and treatments for CV19. I think we will be hearing news very shortly how IPIX Brilacidin will play a part in this battle against CV19. If the next round of testing is successful there very well could be multiple suitors interested in partnering in a race to treat this terrible virus and future threats from biochemical weapons and viruses.
The example is Pfizer’s partnership with BioNTech (BNTX) to develop a CV19 vaccine. BNTX is a biotech that has developed an RNA based technology. It appears they have several partnerships in the works with the recent Pfizer 3/17/20 deal by far their largest. As far as I could determine BNTX does not have any FDA trials beyond Phase 1 at this point.
I understand that BNTX’s product and approach are completely different than IPIX’s Brilacidin and that they are focused on developing a vaccine whereas it is yet to be seen if Brilacidin is used as a treatment or as part of a vaccine development for CV19. The point of comparison is to show what Big Pharma is willing to spend with smaller Biotech companies to combat CV19 and the effect these BP partnerships can have on the valuation of their smaller biotech partners.
Pfizer is paying BNTX $185M upfront ($72M cash/ $113M equity) with an additional $563M in milestone payments. I used Yahoo Finance #s which may not be up to the minute but are consistent for comparison purposes and valuations.
BNTX - SP $46 dollars/ OS 227M/ MC 10.6B
IPIX – SP 10.6 cents/ OS 230M/ MC 24.5M
Note that the Outstanding Share count is similar. Am I claiming that IPIX SP should be at $46/share or that IPIX is undervalued by a factor of over a 400 multiple? No, but what I am saying is that a BP partnership deal or a Government grant that would accelerate Brilacidin through Phase 3 trials could catapult IPIX SP into multiple dollars very quickly. There are many BP’s and Government agencies working towards both vaccines and treatments for CV19. I think we will be hearing news very shortly how IPIX Brilacidin will play a part in this battle against CV19. If the next round of testing is successful there very well could be multiple suitors interested in partnering in a race to treat this terrible virus and future threats from biochemical weapons and viruses.
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