Nano cap Innovation Pharmaceuticals (OTCQB:IPIX +58%) is up on almost triple normal volume in reaction to its out-licensing agreement with Bologna, Italy-based Alfasigma S.p.A. for global rights to develop and commercialize locally administered (foam, gel, enema) Brilacidin for the treatment of ulcerative proctitis/ulcerative proctosigmoiditis.
Under the terms of the agreement, IPIX will receive up to $24M in upfront and milestone payments and a 6% royalty on net sales. Alfasigma also has a right of first refusal for the use of Brilacidin in more extensive types of inflammatory bowel disease like ulcerative colitis and Crohn’s and a right of first negotiation for Brilacidin in other gastrointestinal indications.
