The coronavirus theme continues to completely dominate the landscape for stock pickers, and one stock that might benefit over the coming period could be Innovation Pharmaceuticals Inc (OTCMKTS:IPIX). The company is developing a unique compound (Brilacidin) that belongs to a rare class known as called defensin-mimetics. Recent research has emerged that suggests this compound may prove useful as a therapeutic tool as we fight against COVID-19. In that vein, the company just hit the wires with the announcement of further details on its Material Transfer Agreement (MTA) signed with a leading public health-focused U.S. university and top coronavirus expert.
According to the release, “under the terms of the confidential agreement, virologists plan to evaluate the potential antiviral properties of Brilacidin, the Company’s lead defensin-mimetic drug candidate, toward developing Brilacidin as a potential novel coronavirus (COVID-19) vaccine.” This obviously could be huge news once the momentum trading crowd finds it.
Innovation Pharmaceuticals Inc (OTCMKTS:IPIX) promulgates itself as a clinical stage biopharmaceutical company developing a world-class portfolio of innovative therapies addressing multiple areas of unmet medical need, including inflammatory diseases, cancer, infectious disease, and dermatologic diseases.
Brilacidin, a versatile compound with broad therapeutic potential, is in a new chemical class called defensin-mimetics. A Phase 2 trial of Brilacidin as an oral rinse for the prevention of Severe Oral Mucositis (SOM) in patients with Head and Neck Cancer, met its primary and secondary endpoints, including reducing the incidence of SOM.
The Company plans to advance Brilacidin oral rinse into Phase 3 development, subject to available financial resources. Positive results were also observed in a Phase 2 Proof-of-Concept trial treating patients locally with Brilacidin for Ulcerative Proctitis/Ulcerative Proctosigmoiditis (UP/UPS). Brilacidin for UP/UPS was licensed to Alfasigma S.p.A. in July 2019. A Phase 2b trial of Brilacidin showed a single intravenous dose of the drug delivered comparable outcomes to a seven-day dosing regimen of the FDA-approved blockbuster daptomycin in treating Acute Bacterial Skin and Skin Structure Infection.
Kevetrin is a novel anti-cancer drug shown to modulate p53, often referred to as the “Guardian Angel Gene” due to its crucial role in controlling cell mutations and has successfully completed a Phase 2 trial in Ovarian Cancer.
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As noted above, IPIX just announced that its lead asset, Brilacidin, is now being evaluated as both a potential therapeutic and vaccine. That puts this stock in the lottery now playing out in the market. But the crowd obviously hasn’t really found it yet, offering a potential opportunity based on the dynamic we continue to see playing out every day as this unique and remarkable period unfolds.
Of course, that’s a little misleading: there isn’t one lottery playing out in the market right now. There are several: therapeutics, vaccines, equipment solutions, and telehealth solutions. Those are medical lottery tickets in play. Naturally, what makes IPIX so interesting is that this might be the only stock around that is now legitimately in two different lotteries.
According to its latest release, “This new research is independent of that being conducted on Brilacidin at one of the U.S. 12 Regional Biocontainment Labs (RBL). The RBL is testing Brilacidin’s potential inhibitory activity as a small molecule drug against SARS-CoV-2, the novel coronavirus responsible for COVID-19.”
The stock has been strong, up now about 60% over its levels at the start of the year. But it has also been pulling back over the past 3 weeks. That pullback is now testing key pattern/range support at the $0.08 level, which roughly corresponds with some major moving average support as well.
Earning a current market cap value of $21.6M, IPIX has a chunk ($187K) of cash on the books and is pulling in trailing 12-month revenues of $400K. As more color becomes clear on the name, we will review the situation and update our take. Sign-up for continuing coverage on shares of $IPIX stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $HVBTF, either long or short, and we have not been compensated for this article.