Isotechnika Pharma Inc IPHAF

RE: RE: material change report....

[macbethorfaust]

have also read it

the deal is pretty much exactly what this board has already discussed - the IP goes to Paladin (well, technically it stays with ISA but Palladin takes ISA) and we get new shares in New ISA (ISA Pharma).  ISA Pharma has an exclusive perpetual license to develop and commercialize voclo in all the major markets (including the US and Europe) so economically not a lot different from owning the stuff

EXCEPT of course that we have had to pay a pound or two of flesh to stay alive - we still get the Lux milestones and royalties but now we have to hive off 12% to Paladin - we still get royalties on the other indications when commercialized in the major markets, including transplant, except once again we have to pay 12% to Paladin

And Palladin also has 19%  of ISA Pharma which will give it significant clout on its board.

So, as was already discussed, it was a seroiusly tough deal and has cost the ISA shareholders about 30% (maybe even a third) of the upside they might otherwise have had. As one or two have already said, though, better 70% of something than 100% of nothing.  And this could still well be 70% of quite a lot.

All that said, you can bet Palladin will have its finger on exactly where ISA Pharma is going.  If there are any other major developments or if Lux gets its NDA, watch for the take over bid.