Name: Innovation Pharmaceuticals Inc. Q1 2017 Earnings Call
Start: 2016-11-15T00:00:00.000Z

Executive Summary

Development-stage quarter with no revenue and a net loss of $3.03M ($0.02 per share), broadly consistent with prior-year loss per share and driven by higher R&D spend supporting four mid-stage trials .
Cash was $5.56M at quarter-end; management highlighted access to additional equity funding via Aspire Capital and projected ~$19M of next-12-month spend (incl. ~$15M for clinical trials), asserting liquidity sufficiency for 12 months .
Clinical execution advanced: Phase 2b Prurisol (psoriasis) enrollment underway; Brilacidin Phase 2 OM interim analysis targeted 1H 2017; Brilacidin UP/UPS Phase 2a showed early clinical improvements; Kevetrin Phase 2a prepared to demonstrate p53 modulation .
Street consensus EPS/revenue estimates via S&P Global were unavailable for IPIX; as a micro-cap biotech without product revenue, stock reaction hinges on trial readouts and partnering signals rather than quarterly financials [SpgiEstimatesError].

What Went Well and What Went Wrong

Management expanded clinical leadership and moved multiple assets forward concurrently, noting “we have yet to fail in any clinical trial with any of our drug candidates” .
Brilacidin UP/UPS Phase 2a interim data showed clinically meaningful symptom improvements with undetectable plasma levels, supporting localized efficacy and favorable safety profile .
Clear near-term milestones were articulated (OM interim 1H 2017; Prurisol 2b interim 1H 2017), positioning for partnership discussions and potential catalysts .

Ongoing operating losses widened YoY in dollar terms due to increased R&D and stock-based comp, though loss per share remained $0.02; no revenue to offset burn .
Working capital deficit increased to ~$2.6M at quarter-end, underscoring continued reliance on external capital (Aspire) and dilution risk if partnerships delay .
Formal Q1 earnings call transcript was not available; investor communications were through press releases and a planned video Q&A, limiting granular call disclosures .

Metric	Q1 FY2016 (Sep 30, 2015)	Q4 FY2016 (Jun 30, 2016)	Q1 FY2017 (Sep 30, 2016)	Q2 FY2017 (Dec 31, 2016)
Revenue ($USD)	$0	N/A	$0	N/A
Net Loss ($USD Millions)	$(2.58)	N/A	$(3.03)	$(3.36)
Diluted EPS ($USD)	$(0.02)	N/A	$(0.02)	$(0.03)
R&D Expense ($USD Millions)	$1.83	N/A	$2.28	N/A
G&A Expense ($USD Millions)	$0.34	N/A	$0.36	N/A
Cash and Equivalents ($USD Millions)	N/A	$6.31	$5.56	$3.90
Working Capital (Deficit) ($USD Millions)	$(1.90) (Jun 30, 2016)	$(1.90)	$(2.60) (Sep 30, 2016)	N/A

Notes: N/A denotes not disclosed in available filings for that specific quarter.

Segment breakdown: Not applicable (no revenue segments) .

KPIs

KPI	Q1 FY2016	Q1 FY2017
Ongoing mid-stage trials (#)	3 (Brilacidin OM, ABSSSI complete; Prurisol planning; Kevetrin planning)	4 (Brilacidin OM, Brilacidin UP/UPS, Prurisol 2b, Kevetrin 2a)
Aspire Capital remaining ($USD Millions)	~$20 (as of Sep 30, 2016)	~$20 (as of Sep 30, 2016)

Metric	Period	Previous Guidance	Current Guidance	Change
Operating cash needs	Next 12 months from Sep 30, 2016	Not previously quantified	~$19M total spend, incl. ~$15M clinical trials	New explicit budget
Liquidity sufficiency	Next 12 months from Sep 30, 2016	N/A	Management believes Aspire and shelf registration sufficient to fund 12 months	New assertion
Brilacidin OM	1H 2017	Interim analysis 1H 2017	Reaffirmed; completion expected by year-end	Maintained timeline
Prurisol 2b	1H 2017	Interim analysis 1H 2017	Reaffirmed	Maintained timeline
Brilacidin UP/UPS	1H 2017	Complete Phase 2a in 1H 2017	Interim/ongoing with encouraging cohort results	Progressing on plan
Kevetrin 2a (ovarian)	Q4 2016 start	Initiate 4Q 2016	Prepared/commenced by Feb 2017 update	Slight delay to early 2017

Topic	Previous Mentions (Q4 FY2016 business update)	Prior Quarter (Q1 FY2017 press release)	Current Period (Q1 FY2017)	Trend
Partnerships focus	Target partnering post mid-phase data; under CDAs	Increased high-level meetings; partnership focus reiterated	Strategy maintained	Consistent, building toward data-driven deals
Brilacidin OM	Interim 1H 2017; aim for prevention standard	Trial ongoing; interim 1H 2017	Timeline reaffirmed	On track
Brilacidin UP/UPS	Interim analysis 4Q 2016; complete 1H 2017	Initial cohort improvements; localized exposure	Continued positive interim observations	Strengthening clinical signal
Prurisol 2b	Initiation 4Q 2016; interim 1H 2017	Enrollment underway; PASI endpoint; interim 1H 2017	Reaffirmed	Execution progressing
Kevetrin (p53)	Prepare 2a; oral formulation R&D	Preparing 2a; oral formulation work	Commenced 2a by Feb release	Moving into proof-of-mechanism

“It was a great quarter... we demonstrated limited systemic risk in localized Brilacidin therapy... advancements have been made for an oral formulation of Kevetrin; and we are progressing in our clinical trials... we have yet to fail in any clinical trial” .
On Prurisol: “Phase 2b underway... the potential safety profile... may make this an attractive alternative to Celgene’s OTEZLA” .
On Brilacidin OM: goal is to show dual functionality “not only shortening the duration and intensity... but also preventing the onset” where no approved preventative exists .

A formal Q1 FY2017 earnings call transcript was not available in our document catalog; management scheduled a video presentation and Q&A release on Nov 15, 2016 (investor relations link), but transcript content is not captured here .

Wall Street consensus EPS and revenue estimates via S&P Global were unavailable for IPIX in this period due to missing CIQ mapping. As a pre-revenue micro-cap biotech, quarterly EPS comparisons to consensus are typically less meaningful; investor expectations are driven by clinical timelines and partnering [SpgiEstimatesError].

Near-term catalysts across four mid-stage programs (Prurisol 2b interim; Brilacidin OM interim and UP/UPS completion; Kevetrin 2a mechanistic readouts) can be stock-moving without revenue dependency .
Cash burn is increasing with expanded trials; while Aspire provides runway, partnership timing is critical to mitigate dilution and fund Phase 3 transitions .
Brilacidin’s localized efficacy signals (undetectable systemic exposure with clinical improvement) strengthen its profile in both GI and OM indications, enhancing partnering appeal .
Prurisol’s oral route positions it favorably versus injectables, with management explicitly targeting Otezla-like market opportunities pending efficacy in moderate-to-severe patients .
Investors should focus on data quality and regulatory interactions (e.g., potential breakthrough/fast track pathways for OM), which can accelerate timelines and rerate valuation .
Absence of Street estimates means price action will be headline-driven; plan for binary outcomes around interim analyses and maintain risk management accordingly [SpgiEstimatesError].
Monitor liquidity updates (cash, Aspire utilization) and working capital trends each quarter to gauge financing cadence ahead of pivotal studies .