We are three years down the path of the Baxter deal and you really have to say they played it perfectly.
They didn’t just buy PMX outright- and then pay for the trial, and take on the risk of FDA approval.
No, Instead they put up 5mil to lock in somewhere around 40- 50% of the future “approved” PMX returns.
They set another small payment at 60% enrollment. A reward if Spectral could deliver positive efficacy numbers with those first 90 patients.
If Spectral presented the same enrollment predictions to Baxter as they did to investors- (.5 to 1. patient enrolled per site, per month). Baxter would imagine Spectral hitting 70- 140 patients enrolled in just 10 months..
But, obviously they hit nothing close.
Instead more than 40 months later we are at only 50 patients enrolled. And correct me if I’m wrong, but I believe it’s taken another 3 raises and $30+ million on top of Baxter’s money to get to that 50 patients.
So… Baxter saved themselves boatloads of cash. And for a tiny investment they are sitting in the birddog seat- ready, no matter how many years it takes the trial to finish, no matter what the cost to Spectral shareholders.
And if Spectral finds that they are unable to finish the trial (cough, cough DIMI).. I’m sure Baxter would be happy to create an i-PMX and take it off our hands..