Innovation Pharmaceuticals Inc (OTCMKTS:IPIX) About To Breakout

Our readers remember well our last article about Innovation Pharmaceuticals Inc. (OTCMKTS:IPIX), the biopharmaceutical company. We said that the company had changed its name and ticker, but the R&D activities remained the same, thus the shares did not really react to the announcement.We believe that an update on this name is necessary, as good news came out recently. The most significant factors were the news regarding the phase 2 trial of Brilacidin for preventing oral mucositis in cancer patients and the $30 million common stock agreement. But, there were some other news that we believe that the market did not assess correctly.Regarding the share price, the stock is consolidating at the $0.70 price level since August. In our opinion, if good news regarding the drug development keep coming, the demand for the share price could increase and move the share price higher.Have a look at the recent share price action and form your own opinion before we provide more details: 1 year chart for IPIX 1 month chart for IPIXRecent DevelopmentsLet's quickly revisit the business objective of IPIX for those who did not read our previous coverage. Headquartered in Beverly, Massachusetts, it is a clinical stage biopharmaceutical company developing innovative therapies in multiple diseases. The company has three drug candidates:

• Prurisol for treatment of Psoriasis, which has completed a Phase 2 trial and a Phase 2b study.
• Anti-cancer drug Kevetrin, which has successfully concluded a Phase 1 clinical trial at Harvard Cancer Centers’ Dana Farber Cancer Institute and Beth Israel Deaconess Medical Center.
• Brilacidin for the prevention of OM in patients with head and neck Cancer.

What's new?The following announcements were released recently.On June 26, 2017, the market got to know that patient treatment had been completed in its Phase 2 open-label, Proof-of-Concept clinical trial evaluating Brilacidin for mild-to-moderate Ulcerative Proctitis/Ulcerative Proctosigmoiditis, and two types of Inflammatory Bowel Disease. Additionally, it was noted that the next Brilacidin UP/UPS data was going to be released in early July.We appreciate the development and agree with the reaction of the market, which pushed up the share price from $0.7 to close to the $1.10 share price level.On July 13, 2017, as promised, the company released new data. We highlight the following from the press release:

"Improvement in Quality-of-Life, using the Short Inflammatory Bowel Disease Questionnaire (SIBDQ), was reported with more than 60 percent of patients in each cohort achieving a ≥10-point or more improvement after six weeks of treatment. " Source

Additionally, we appreciate the words of Arthur P. Bertolino, MD, PhD, MBA, President and Chief Medical Officer at Innovation Pharmaceuticals, who was pleased with the results. He explained that the results were strong and they add further credibility to the Brilacidin's treatments.In August, new developments were also released. A total of 61 patients were enrolled Phase 2 clinical study of Brilacidin for the prevention of Severe Oral Mucositis. It was noted in a press release that the market got to know about it on August 7, 2017. Additionally, a corporate overview was noted also in August: BioCentury’s 24th Annual NewsMakers in the Biotech Industry Conference at the Millennium Broadway Hotel in New York, NY. The presentation was scheduled on Friday, September 8, 2017, but we did not really see a reaction on the market. Thus, nothing new seemed to be released.On August 28, 2017, a new press release noted that the company had successfully met the goal of 189 patients enrolled in its ongoing Phase 2b clinical study of Prurisol for the treatment of moderate-to-severe psoriasis. It was also noted that the final number was expected to be 199 in September.September seemed to be a good month in terms of news, even if the market did not respond by pushing up the share price. On September 11, 2017, the company noted a new $30 million common stock purchase agreement. Aspire Capital Fund, LLC, had committed to acquire over the next three years up to an additional $30 million of IPIX common stock. We believe that shareholders will be able to see an increase in the demand for the share price in the near future. This was beneficial news for the company.Furthermore, on September 14, 2017, it was received by the market that a new clinical site has been added in the Company’s Phase 2 clinical trial of Kevetrin for ovarian cancer. It was noted that a "a renowned academic medical center, is now actively enrolling patients." It was a good news that the market did not celebrate, but we believe that it will help enhance shareholder value in the future.Finally, on October 2, 2017, it was noted that a total of 61 patients were enrolled in the Company’s Phase 2 clinical trial of Brilacidin. Arthur P. Bertolino, MD PhD, MBA, President and Chief Medical Officer at Innovation Pharmaceuticals, was quoted:

“Oral mucositis represents a significant treatment challenge to hundreds of thousands of patients and their team of doctors every year. Moreover, costs associated with managing OM place a substantial financial burden on our healthcare system due to a lack of safe and efficacious therapies to not only treat the condition, but prevent it." Source

Additionally, he noted that the study data will be unblinded after the coming weeks. We need to be alert, as good news could be making the share price increase. ConclusionCurrently trading with a market cap of $102 million, IPIX is an exciting story among small caps. With $4 million in cash on the balance sheet, another $4 million in intangibles and $10 million in total liabilities, the company will need more capital in the near future. But, we believe that, given the new developments in the research work and the catalyst created, financing will not be the problem. We will be updating our subscribers as soon as we know more. For the latest updates on IPIX, sign up below!Image courtesy of Roland Tanglao via FlickrDisclosure: We have no position in IPIX and have not been compensated for this article.