Partnering opportunities tend to be more prevalent with positive Phase II results in hand because of the generally conservative perspective of bigger biopharma companies. As Phosphagenics have disclosed, some discussions are ongoing. If a partnership comes after positive Phase III results, it will look a lot different than if Phosphagenics were to do one before but then, of course, Phosphagenics carries 100% of the risk.
As many on this board have highlighted, I too don't believe Phosphagenics have any intention to go through the FDA process without a big pharma partner onboard. This is a very strategic move on their part. The closer Phosphagenics get to phase III, the closer they get to a deal. Phosphagenics know what they have and so do the pharma they're in ongoing discussions with. What is this causing? Competitive tension. Phosphagenics know this as do big pharma. In my opinion, it won't be long before BIG pharma will be ready to talk BIG deal soon, especially in light of Big Pharma's patent cliff.
How will this look then for Phosphagenics?
* The OXY deal will validate Phosphagenics technology like no other.
* I'd say by that stage other big pharma will be circulating all around Phosphagenics knowing the other delivery options the company have ready and available.
* Haven't even touched on the potential of Diclofenac, Animal Health, Psych, Insulin etc...
BIG BIG plans are taking place in my opinion. Phosphagenics may be MUCH closer to a deal than we think.
Tony
POH Price at posting:
21.0¢ Sentiment: LT Buy Disclosure: Held
