Innovation Pharmaceuticals Inc (OTCMKTS:IPIX) embarking on an international expansion drive, for its lead candidate drug, could the spark that will fuel a bounce-back form all-time lows. The company has announced plans to establish a European subsidiary to develop drug candidates internationally.
Innovation Pharmaceuticals Price Analysis
The stock’s sentiments in the market have also received a boost on the clinical stage company announcing plans to develop an oral version of Brilacidin, its lead candidate drug, for the treatment of inflammatory bowel disease. The announcement comes on the heels of the company securing a key patent that further strengthens its intellectual property estate.
Recent developments have helped shore the stock sentiments in the market. A spike in share price, as well as turnover in traded shares, attests to renewed investor interest as the company moves to strengthen its prospects in the clinical stage space.
Investors have since pushed the stock up, by 50 %, signaling a potential change in the direction of trade after a ferocious sell-off in 2018. Innovation Pharmaceuticals needs to rally and stabilize above the $0.18 mark, to reaffirm suggestions that the bear run has run its course and it is time for a bounce back.
Above the $0.18 critical resistance level, Innovation Pharmaceuticals would be open to making a run for the $0.30 mark, seen as the next resistance level. On the downside, the stock is staring at the $0.10 mark, seen as the immediate support level. A breach of the critical support level would leave stock susceptible to further drops.
About Innovation Pharmaceuticals
Innovation Pharmaceuticals is a clinical stage biopharmaceutical company focused on the development of small molecule therapies, for the treatment of cancer, dermatology as well as anti-infective. Its lead product is Brilacidin is currently undergoing phase II trial for the treatment of oral mucositis.
Innovation Pharmaceuticals has started showing signs of bottoming out, after underperforming in 2018. Fuelling the upward momentum is the announcement the company intends to create a European subsidiary for the development of drug candidates on the global scene.
The expansion drive comes on the company’s lead product Brilacidin attracting immense licensing interest, as a new drug for the treatment of inflammatory Bowel diseases and Oral Mucositis. According to the Chief Executive Officer, Leo Ehrlich, the formation of a European subsidiary is an important step in the evolution of the company.
For starters, the subsidiary should open the door for the company to pursue strategic collaborations in the European Union. The new unit should also lead to cost-saving efficiencies and flexibility, with regards Brilacidin development under the European Medicine Agency Standards.
“The European subsidiary will serve as an important bridge to international markets, where we are seeing particularly strong partnering interest in Brilacidin across multiple indications, recently reinforced by compelling clinical data from our Phase 2 trials for Inflammatory Bowel Diseases and Oral Mucositis,” said Mr. Ehrlich.
Strengthening IP Portfolio
Early this year, the U.S Patent & Trademark Office did grant the company a new patent for its candidate drug Brilacidin. The patent covers the use of the drug in a pharmaceutical composition containing water. It also covers its composition including additional medicaments such as antibiotics
Brilacidin Clinical Trials
European expansion also follows the announcement that the clinical stage company is ready to commence a clinical trial of Brilacidin as an oral dosage form. The new trial will build upon Phase 2 Proof-of-concept clinical trial for Ulcerative Proclitic. The primary goal is to come up with extensive forms, for the treatment of inflammatory bowel disease and Ulcerative Colitis
“IBD represents a large therapeutic area, affecting millions of people worldwide, in which novel, non-biologic, oral therapies are desperately needed. Approximately one-third of patients fail to respond to initial current IBD treatments, with another one-third of patients developing a loss-of-response within a few months of going on drug,” said Arthur Bertolino Chief Medical Officer.
A bounce back from all-time lows indicates that investors are slowly taking note of Innovation Pharmaceuticals prospects with its candidate drug Brilacidin. The drug has already shown compelling therapeutic benefits, across multiple indications, affirming its credentials in generating long-term value.
The fact that Brilacidin has the potential to be useful in combination with other medications or agents points to bright future on the value generation front. That said 2019 is turning out to be an inflection year for Innovation Pharmaceuticals, after the underperformance of yesteryears.
The stock should continue bottoming out as the company achieves important strides in the development of its candidate drug, further supported by an international expansion drive.
We will be updating our subscribers as soon as we know more. For the latest updates on IPIX, sign up below!
Disclosure: We have no position in IPIX and have not been compensated for this article.