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Wall Street’s Biggest Bear: This Is A “Vicious Bear Market Rally To Sell”, Stocks Will Drop Another 10-20% By Mid-April

Wall Street’s Biggest Bear: This Is A "Vicious Bear Market Rally To Sell", Stocks Will Drop Another 10-20% By Mid-April

Two days after JPMorgan’s…

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Wall Street's Biggest Bear: This Is A "Vicious Bear Market Rally To Sell", Stocks Will Drop Another 10-20% By Mid-April

Two days after JPMorgan's Marko Kolanovic spun the broken record and not once but twice in the past week told his clients to buy the dip, something he has been saying every single week in 2022 with less than stellar results...

... he is about to get another brand new dip to urge clients to buy. We can only hope said clients have any money left.

Meanwhile, while JPMorgan keeps digging its permabullish grave deeper with every passing week, Morgan Stanley's bearish strategist Michael Wilson continues to build his credibility and fly circles above the rest of the Street which is desperately trying to extricate itself from its ridiculous trend-chasing optimism at the end of 2021, and one day after reminding clients that the current cycle is getting "late" and will burn out far sooner than expected, warning that the US economy could be in a downturn as soon as 5 months from now (read: recession) he is out with another note this morning in which he takes the diametrically opposite view of Kolanovic, and says that while "the rally in equities over the past week was one of the sharpest on record" and could go a bit higher, led by the Nasdaq and small caps, he remains convicted "it's still a bear market and we would use this strength to position more defensively."

But let's back up. For those who missed his Sunday Start note published yesterday, Wilson reminds readers that a year ago, he published a note with his Economics and Cross Asset Strategy teams arguing this cycle would run hotter but shorter than the prior 3. His view was based on the speed and strength of the economic and earnings rebound post the 2020 recession, the return of inflation after a multi-decade absence, and an earlier-than-expected pivot to more hawkish Fed policy.

In light of this, last Friday Morgan Stanley published an update that shows developments over the past year support this call—US GDP and earnings have surged past prior cycle peaks and are now decelerating sharply, inflation is running at a 40-year high, and the Fed has executed the sharpest pivot in policy we’ve ever witnessed.

Meanwhile, just 22 months after the end of the last recession - which anyone with half a brain realizes never actually ended the prior business cycle as debt never dropped and in fact, spiked - Morgan Stanley's Cross Asset team’s US cycle model is already approaching prior peaks, as we noted last night. By way of background, this indicator aggregates key cyclical data to help signal where we are in the economic cycle and where headwinds/tailwinds exist for different parts of the market. Of course, the latest rebound has been unusually fast (and artificial, on the back of tens of trillions in monetary and fiscal stimulus). The model is currently in the “expansion” phase (data above trend and rising—i.e., mid-to-late cycle), and as Morgan Stanley warns, "at this pace, the indicator could peak in 2-4 months and move to "downturn" 5-10 months from today."

Stepping away from the economy and shifting attention to stocks, here too Wilson notes that "earnings, sales, and margins have all surged past prior cycle highs." In fact, earnings recovered to the prior cycle peak in just 16 months, the fastest rebound going back 40 years.

Meanwhile, the early-to-mid cycle benefits of positive operating leverage have come and gone, and US corporates now face decelerating sales growth coupled with higher costs, according to Wilson. As such, the bank's leading earnings model is pointing to a steep deceleration in EPS growth over the coming months and higher frequency data on earnings revision breadth are trending lower—driven by cyclicals and economically sensitive sectors—a set-up that looks increasingly “late” cycle.

Another reason behind Wilson's conviction of a shorter cycle is his analysis of the 1940s as a good historical parallel. Specifically, back then excess household savings unleashed on an economy constrained by supply set the stage for breakout inflation... just like now. Developments since the bank published its original report in March of last year continue to support this historical analogue—inflation has surged, forcing the Fed to move off the zero bound aggressively in a credible effort to restore price stability.

Assuming the comparison holds, Wilson expects the next move to be a slowdown and ultimately a much shorter cycle. And although the end does not appear to be imminent, the slowdown in earnings that Wilson has been expecting looks incrementally worse than it did when he first published his fire and ice narrative last fall.

With that background in mind, and with the Fed finally raising rates this past week and communicating a very hawkish tightening path over the next year (something Powell did again just moments ago on Monday during his speech at the NABE annual conference), Morgan Stanley's rates strategists are looking for an inversion of the yield curve in 2Q, although one look at the sharp inversions already observed in the 3s10s and 5s10s, there may be a risk this is Q1 business.

Here Wilson hedges somewhat - knowing well that it is very much frowned upon for established Wall Street strategists to predict a recession - and says that while curve inversion does not guarantee a recession (and he is not forecasting one), it does support his view for decelerating earnings growth "and would be one more piece of evidence that says it’s late cycle."

It also justifies the bank's reco toward defensively oriented stocks and sectors, which is looking increasingly appropriate as the Fed pivots and growth slows—i.e. fire AND ice.

Here, energy is the real outlier for obvious reasons which are not helpful economically speaking. Such leadership is reflective of very late cycle dynamics.

In addition to the above late-cycle analysis, Wilson also looked at what sectors do well when inflation is above trend and falling—a period he thinks is beginning now. He notes the fact that inflation is so high almost guarantees it's close to peaking from a rate of change standpoint. Furthermore, the Fed's aggressive pivot this past week should help, just as it did in the 1940s. Assuming that's the right framework, the argument for defensive positioning is clear;  it also tends to be bad for cyclicals relative to defensive and the market more broadly.

Wilson ends his macroeconomic tour de force recap by repeating his view that COVID did not create any real value for the economy or the average company: "In fact, it's more likely that the pandemic destroyed value by exposing the fragility of just in time inventory systems and the outsourcing of manufacturing and other forms of labor." It also may have impaired the domestic labor force in a way that will take years to fix, not to mention the government's balance sheet, which puts potentially productive investments in infrastructure on hold.  Furthermore, the damage from 40-year high inflation will also leave a scar on the consumer and businesses that may take a long  time to heal.

The point of these comments, Wilson explains, "is that it doesn't make sense that stock prices would be so much higher than the pre-pandemic levels, even adjusting for inflation and nominal prices. Yet, here we are."

Here we are indeed... so does that mean that one should listen to Kolanovic and wait for future dips to buy and ride out until things normalize? Not at all according to Wilson, who boldly takes the other side of Kolanovic's trade reco (i.e., the same as JPM's trading desk), and notes that his primary out of consensus call for 2022 was that "valuations were too high and ripe for a de-rating." Fast forward to today, and it's fair to say that call has played out, something no other Wall Street strategist can claim, certainly not those permabulls from Goldman or JPM.

The rationale for Wilson's view has been two-fold: the Fed was going pivot to a more hawkish position than most expected ("fire") while growth was likely to slow ("ice"). As part of this framework, Wilson set his target at 18x forward 12-month EPS, which assumed a 2.1% 10-year Treasury yield and an equity risk premium (ERP) of 350bps.

Since establishing that view in mid-November, a lot has happened that Wilson's "fire and ice" narrative has only gotten more extreme.

First, the Fed's action in January left the consensus convinced it will hike Fed Funds another 175 bps over the next year and reduce its balance sheet by half a trillion dollars. This has taken 10-year yields past the bank's prior year end targets of 2.1%. As such, MS rates strategists forecast 10-year yields to now end the year at 2.4%, with a bull case of 2.1%. The good news is that most of the damage is done now on rates and that has been reflected in PEs. At the lows last week, the S&P 500 traded right to our 18x target and then stopped. So, as Wilson reveals, "many are now asking us if that was enough."

The answer, it should come as no surprise, is no.

As Wilson explains, the overall macro environment has gotten worse, "which means we are likely to undershoot our 18x target, to the downside. The Fed (and other central banks) are very focused on inflation, and Russia's invasion of Ukraine only increases the pressure on prices, especially food and energy. Meanwhile, the situation is weighing further on both consumer and business confidence, which is not good for growth, nor is it priced."

How do we know? Well, as noted, the PE is a function of 10-year yields and ERP. Think of rates as the component of PEs that reflects Fed tightening as well as growth and inflationary pressures. While many bond market participants are looking for the 10- year to back up much further, Morgan Stanley does not, particularly in the near term. In other words, the rates market has adjusted  appropriately and fully reflects the Fed's pivot as it stands today. However, the entire PE compression since November is due to rates, while the ERP has remained flat

That means that the ERP has not adjusted for the rising risk to growth, whether that's geopolitical concerns, or the earnings risk from payback in demand, margin pressure from inflation and/or rising inventory.

So how much higher should the ERP be? That's a debatable question, but as Wilson has shown in prior research, just based on market volatility, one could argue the ERP is now 150bps too low

Similarly, given the substantial rise in investment grade credit spreads, one would expect the spread on equities would have risen proportionately. But that is not the case, instead we see that IG credit spreads widened significantly more than the ERP over the past month with the differential increasing last week. This is one of the reasons Wilson says he sold stocks last week and bought both long duration Treasuries and US investment grade credit in his Wealth Management asset allocations. Wilson also continues to like long duration bonds as a cheap hedge against a growth scare that could become the focus of markets as we move into April, something ERPs are not pricing.

Another question is how low can P/E multiples go?

In recent notes, Wilson discussed this overshoot on PEs and suggested 16x NTM EPS as a level where we would get interested. That math is very simple as laid out in the matrices below

Bottom line, with rates having moved higher even faster than expected this year and the geopolitical environment deteriorating  substantially, Wilson believes a much more realistic PE to think about adding equity risk is closer to 16x, if not lower. Based on the still strong NTM EPS forecast of $232 implies the S&P 500 is 10- 20% over valued after last week's rally, according to Wilson.

And speaking of last week's rally, it still lines up with Morgan Stanley's price analog from 2018 on time although it's not nearly as tight on price as it was earlier in the month.

Nevertheless, it still provides a loose guide when thinking about the next down leg, which the MS strategist expects to be completed by mid/late April,and is why he recommends that "investors use last week's strength as an opportunity to get more defensive if they haven't already."

Wilson's bottom line: "last week was nothing more than a vicious bear market rally, in our view, and while it may not be completely finished, it is a rally to sell."

One final point from Wilson who notes that when looking at the major indices, it appears that the Nasdaq and Russell 2000 may have more upside than the S&P 500 should the rally continue into this week: "This is merely a function of the fact these indices sold off harder and are further below their respective 200-day moving averages. There is also a larger short base in these indices and they would likely benefit from a pause or even reversal in back end rates, especially the Nasdaq." However, even with a rally, both of these indices' relative strength have broken down, and until that changes, they are not attractive on a relative basis from an investment perspective beyond this technical bounce.

Tyler Durden Mon, 03/21/2022 - 14:46

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Government

40,000 National Guard Troops Face Unemployment As Vaccine Deadline Imminent

40,000 National Guard Troops Face Unemployment As Vaccine Deadline Imminent

Up to 40,000 Army National Guard troops – around 13% of the force…

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40,000 National Guard Troops Face Unemployment As Vaccine Deadline Imminent

Up to 40,000 Army National Guard troops - around 13% of the force - could be fired for not getting the mandated COVID-19 vaccine (which has limited efficacy against Omicron, doesn't stop transmission, has been linked to elevated heart problems, and has been mandated for a healthy demographic that rarely dies of the disease).

Michigan Army National Guard Sgt. Mark Abbott administers a COVID-19 vaccine

Guard soldiers have until Thursday to get the jab, according to the Associated Press, which notes that between 20% and 30% of Guard soldiers in six states remain unvaccinated.

"We’re going to give every soldier every opportunity to get vaccinated and continue their military career. Every soldier that is pending an exemption, we will continue to support them through their process," Lt. Gen. Jon Jensen, director of the Army National Guard, told AP. "We’re not giving up on anybody until the separation paperwork is signed and completed. There’s still time."

Last year, Defense Secretary Lloyd Austin ordered all service members to get the vaccine, with different branches maintaining different deadlines for the jab. The Army National Guard was given the maximum amount of time, largely because its roughly 330,000 soldiers are scattered throughout the country, including remote locations.

The Army Guard’s vaccine percentage is the lowest among the U.S. military — with all the active-duty Army, Navy, Air Force and Marine Corps at 97% or greater and the Air Guard at about 94%. The Army reported Friday that 90% of Army Reserve forces were partially or completely vaccinated.

The Pentagon has said that after June 30, Guard members won’t be paid by the federal government when they are activated on federal status, which includes their monthly drill weekends and their two-week annual training period. Guard troops mobilized on federal status and assigned to the southern border or on COVID-19 missions in various states also would have to be vaccinated or they would not be allowed to participate or be paid. -AP

Complicating matters is a rule that Guard soldiers deployed on state active duty may not require a vaccination, depending on state-level mandates. 

According to the report, at least seven governors have asked Austin to reconsider, or drop, the vaccine mandate for National Guard members - with some having filed or joined lawsuits to that end.

Austin, apparently following his own special brand of science, told them to pound sand, saying that Covid-19 "takes our service members out of the fight, temporarily or permanently, and jeopardizes our ability to meet mission requirements," adding that troops will either need to get vaccinated or lose their Guard status.

"When you’re looking at, 40,000 soldiers that potentially are in that unvaccinated category, absolutely there’s readiness implications on that and concerns associated with that," said Jenson, adding "That's a significant chunk." 

AP reports that around 85% of Army Guard soldiers are fully vaccinated, while 87% are at least partially vaccinated.

Tyler Durden Sun, 06/26/2022 - 18:00

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Government

CDC Confirmed Post-Vaxx Death From Blood-Clotting Two Weeks Before Alerting Public: Emails

CDC Confirmed Post-Vaxx Death From Blood-Clotting Two Weeks Before Alerting Public: Emails

Authored by Zachary Stieber via The Epoch Times…

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CDC Confirmed Post-Vaxx Death From Blood-Clotting Two Weeks Before Alerting Public: Emails

Authored by Zachary Stieber via The Epoch Times (emphasis ours),

The Centers for Disease Control and Prevention (CDC) confirmed in late 2021 that a person died from blood clotting after receiving a COVID-19 vaccine that had been linked with an increased risk of blood clotting, but did not alert the public for two weeks, newly obtained emails show.

A general view of the Centers for Disease Control headquarters in Atlanta, Ga., on April 23, 2020. (Tami Chappell/AFP via Getty Images)

Dr. Tom Shimabukuro, a CDC official, told colleagues at the CDC and the Food and Drug Administration (FDA) on Dec. 2, 2021, “We have confirmed a 9th TTS death following Janssen vaccination,” according to emails obtained by The Epoch Times through a Freedom of Information Act request.

TTS refers to thrombosis with thrombocytopenia syndrome, a condition that features low platelet levels combined with blood clots.

Officials had recommended a nationwide pause on the administration of the vaccine, produced by Johnson & Johnson (J&J) subsidiary Janssen, in April 2021 after six women experienced TTS after J&J vaccination and three died. But they lifted the pause after determining the vaccine remained safe and effective.

The condition was not discussed much in the ensuing months, despite the CDC later reporting that five additional deaths occurred before Aug. 31, 2021. Shimabukuro gave a single update, in mid-October 2021, saying five total deaths had been reported.

That was until December 2021. Twelve days after Shimabukuro alerted colleagues of the ninth death, the FDA urged healthcare workers not to administer the vaccine to people with certain conditions because of the TTS risk. Two days after that, Dr. Isaac See, another CDC official, informed the public during a meeting that nine deaths had occurred post-vaccination.

It’s unclear when the CDC learned of the sixth, seventh, and eighth deaths.

The CDC takes reports made to the Vaccine Adverse Event Reporting System and attempts to confirm the reports, including post-vaccination deaths. A higher number of post-vaccination TTS deaths have been reported to the system than the number the CDC has verified.

One day after Shimabukuro confirmed the ninth death, his message was forwarded by Dr. Amanda Cohn, another CDC official, to CDC Director Dr. Rochelle Walensky.

“See below, information on a 9th completely tragic death from TTS,” Cohn wrote.

Many thanks for letting us know … any tragic case,” Walensky responded.

The emails were partially redacted; one was fully redacted.

Read more here...

Tyler Durden Sun, 06/26/2022 - 15:30

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Spread & Containment

Innovation Pharmaceuticals Inc (OTCMKTS: IPIX) Breaking Out as Biotech Reports Brilacidin Inhibits Omicron, Delta, Gamma and Alpha SARS-CoV-2 Variants Based on In Vitro Testing

Innovation Pharmaceuticals Inc (OTCMKTS: IPIX) is moving steadily northbound with power after the Company reported Brilacidin, its defensin-mimetic drug…

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Innovation Pharmaceuticals Inc (OTCMKTS: IPIX) is moving steadily northbound with power after the Company reported Brilacidin, its defensin-mimetic drug candidate exhibiting broad-spectrum antiviral activity, inhibited the Omicron and Delta variants of SARS-CoV-2 based on in vitro testing conducted in collaboration with (NIH) and (NIAID) scientists. Researchers at Rutgers University have also shown Brilacidin inhibited in vitro the Gamma and Alpha variants of SARS-CoV-2. Brilacidin has now been tested in vitro in seven SARS-CoV-2 strains (Omicron, Delta, Gamma, Alpha, Italian, Washington, Wuhan) and three human coronavirus (H-CoV) strains (OC43, 229E, and NL63), in addition to MERS-CoV and SARS-CoV-1. Brilacidin has consistently inhibited all coronaviruses tested, independent of cell type, at generally attainable systemic concentrations (based on established human pharmacokinetics of IV-administered Brilacidin).  

Emerging SARS-CoV-2 variants, and increasingly their sub-variants, contain immunity-evading mutations. These mutations alter key parts of the SARS-CoV-2 spike protein that attach to human cells, making the virus more transmissible and potentially more virulent. Unlike other antivirals, such as monoclonal antibodies, and most vaccines, Brilacidin has been shown not to target the Spike S1 and Spike RBD regions of SARS-CoV-2, acting instead through dual-acting neutralizing and blocking antiviral properties, able to target virus and host. These antiviral traits support Brilacidin’s ability to maintain its anti-coronavirus activity and suggest Brilacidin would be less subject to resistance. Taken together, the results from NIH/NIAID testing of Brilacidin are supportive of previously completed research and give the Company confidence in the compound’s antiviral potential. The Company remains active in pursuing additional government-based funding opportunities, as well as licensing partnerships, to advance Brilacidin in the highly attractive area of developing novel broad-spectrum medicines for treating viral diseases. Microcapdaily has been reporting on IPIX for a long time and we were there when the stock (then trading as CTIX) made a legendary run skyrocketing to $4.93 per share. 

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Innovation Pharmaceuticals Inc (OTCMKTS: IPIX) is a clinical stage pharmaceutical company developing innovative therapies with anti-infective, oncology, anti-inflammatory and dermatology applications. The Company owns the rights to Brilacidin, its lead drug in a new class of compounds called defensin-mimetics, and Kevetrin (thioureidobutyronitrile), its anti-cancer compound. Brilacidin is being studied by the Company, as well as other independent researchers, as a potential broad-spectrum antiviral therapeutic for the treatment of viruses including the novel coronavirus (SARS-CoV-2), which is responsible for COVID-19. 

Brilacidin is Innovation Pharma’s lead drug candidate in its Host Defense Protein (HDP)-mimetic franchise. Brilacidin has been granted Fast Track designation by the FDA and currently is being evaluated in a randomized, placebo-controlled Phase 2 clinical trial in hospitalized COVID-19 patients (see NCT04784897). Two independent Machine Learning (AI) studies also identified Brilacidin as one of the most promising inhibitors of SARS-CoV-2, the virus responsible for COVID-19, based on Brilacidin’s molecular properties. Modeled after HDPs, the “front-line” of defense in the body’s innate immune system, it is a synthetic, non-peptidic small molecule that kills pathogens swiftly, significantly reducing the likelihood of drug resistance developing. Just as importantly, Brilacidin functions in a robust immunomodulatory capacity, lessening inflammation and promoting healing. 

Kevetrin is a small molecule that has demonstrated the potential of becoming a breakthrough cancer treatment by inducing activation of p53, a protein frequently referred to as the “Guardian of the Genome” due to its critical role in controlling cell mutations. In most cancers, regardless of origin, type, and location, the p53 pathway becomes inactivated (dysfunctional), thus preventing the body from performing its natural anti-tumor functions. The TP53 gene is the most studied gene of all time. Conducted at the Dana-Farber Cancer Institute and at Beth Israel Deaconess Medical Center, a Phase 1 clinical trial evaluating Kevetrin in treating Advanced Solid Tumors has been successfully completed, with patients showing good toleration and encouraging signs of potential therapeutic response. The Company has concluded its open-label, dose-escalation Phase 2a trial of Kevetrin in Platinum-Resistant/Refractory Ovarian Cancer. Highly encouraging preliminary data from the first patients treated in the trial showed modulation of the p53 protein in response to administration of Kevetrin. With a promising bioavailability profile, and to leverage its short half-life (the drug exits the body in approximately 8 to 10 hours), efforts are underway to develop Kevetrin as an oral anti-cancer agent (tablet or capsule) that can be administered daily, potentially even multiple times per day. The FDA has awarded Kevetrin Orphan Drug status for Ovarian Cancer, Pancreatic Cancer, and Retinoblastoma, qualifying it for developmental incentives and an extra 7 years of market exclusivity upon drug approval. The FDA also has granted Kevetrin Rare Pediatric Disease designation for childhood Retinoblastoma. 

Microcapdaily has been covering IPIX for years starting with CTIX back in 2015 reporting on the stocks legendary run to $4.93 per share. We stated on CTIX back in the day: “As anyone in the industry knows, regulating the p53 pathway has long been the holy grail of cancer research and big pharma has spent hundreds of millions of dollars researching ways to achieve this with no success thus far. It seems Kevetrin(TM) has accomplished this; extensive preclinical research on Kevetrin shows the re-activation of p53 across a wide spectrum of cancer lines including colon, lung, breast and pancreatic cancers. The market potential for Kevetrin in treating drug-resistant cancers is worth $5 billion a year. Other cancers could easily represent an additional $5 billion annually, he adds.”

IPIX has established a valuable intellectual property portfolio: 

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IPIX

On June 23 IPIX reported Brilacidin, the Company’s defensin-mimetic drug candidate exhibiting broad-spectrum antiviral activity, inhibited the Omicron (B.1.1.529) and Delta (B.1.617.2) variants of SARS-CoV-2 based on in vitro testing conducted in collaboration with National Institutes of Health (NIH) National Institute of Allergy and Infectious Diseases (NIAID) scientists. Researchers at Rutgers University have also shown Brilacidin inhibited in vitro the Gamma (P.1) and Alpha (B.1.1.7) variants of SARS-CoV-2. Brilacidin has now been tested in vitro in seven SARS-CoV-2 strains (Omicron, Delta, Gamma, Alpha, Italian, Washington, Wuhan) and three human coronavirus (H-CoV) strains (OC43, 229E, and NL63), in addition to MERS-CoV and SARS-CoV-1. Brilacidin has consistently inhibited all coronaviruses tested, independent of cell type, at generally attainable systemic concentrations (based on established human pharmacokinetics of IV-administered Brilacidin). Identifying COVID-19 countermeasures with novel mechanisms of action is vital. SARS-CoV-2 continues to evolve at an accelerated pace, raising questions as to what the dominant variant (or sub-variant) may be this fall and winter, when infections often spike — and if today’s COVID-19 vaccines and therapeutics can maintain their effectiveness. 

Emerging SARS-CoV-2 variants, and increasingly their sub-variants, contain immunity-evading mutations. These mutations alter key parts of the SARS-CoV-2 spike protein that attach to human cells, making the virus more transmissible and potentially more virulent. Unlike other antivirals, such as monoclonal antibodies, and most vaccines, Brilacidin has been shown not to target the Spike S1 and Spike RBD regions of SARS-CoV-2, acting instead through dual-acting neutralizing and blocking antiviral properties, able to target virus and host. These antiviral traits support Brilacidin’s ability to maintain its anti-coronavirus activity and suggest Brilacidin would be less subject to resistance. Related, results from new NIH/NIAID in vitro testing of Brilacidin in over 20 acutely infectious viruses, and from the Brilacidin Phase 2 COVID-19 clinical trial, are being prepared for publication. Findings from the Rutgers’ Brilacidin research can be accessed at the link below1 and build on earlier published Brilacidin research conducted by scientists at George Mason University and at University of Arizona and University of California-San Francisco. 

In 2021, the Company completed a Phase 2 clinical trial of Brilacidin (NCT04784897) for treatment of moderate-to-severe COVID-19 patients. While the trial did not meet its primary endpoint in reducing time to sustained recovery through day 29, certain patient subgroups did show treatment benefits of Brilacidin for that primary endpoint. For example, patients treated early from onset of symptoms achieved sustained recovery more quickly (Brilacidin 5-dose group vs pooled placebo, p=0.03). To date, only a modicum of success has been demonstrated by any company conducting clinical trials in moderate-to-severe hospitalized cases of COVID-19. A possible reason for this may be owing to frequent changes in the standard of care with patients receiving a cocktail of fluctuating concomitant medications, which complicates the interpretation of the clinical trial data and that of the new drug candidate being evaluated. Clinical observations of COVID-19 patients treated with Brilacidin further lead us to believe that higher and more frequent dosing of Brilacidin may be more appropriate to tackle this complex disease in the hospital setting. 

Taken together, the results from NIH/NIAID testing of Brilacidin are supportive of previously completed research and give the Company confidence in the compound’s antiviral potential. The Company remains active in pursuing additional government-based funding opportunities, as well as licensing partnerships, to advance Brilacidin in the highly attractive area of developing novel broad-spectrum medicines for treating viral diseases. 

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Currently trading at an $18 million market valuation IPIX has $8.7 million in the treasury, over $11 million in assets vs. $4.5 million in total liabilities. IPIX is CTIX reincarnated and this stock can move skyrocketing to $4.93 per share back in the day; a run we reported on from the beginning. IPIX is heating up and getting noticed by investors after the Company reported Brilacidin, its defensin-mimetic drug candidate exhibiting broad-spectrum antiviral activity, inhibited the Omicron and Delta variants of SARS-CoV-2 based on in vitro testing conducted in collaboration with (NIH) and (NIAID) scientists. Researchers at Rutgers University have also shown Brilacidin inhibited in vitro the Gamma and Alpha variants of SARS-CoV-2. Brilacidin has now been tested in vitro in seven SARS-CoV-2 strains (Omicron, Delta, Gamma, Alpha, Italian, Washington, Wuhan) and three human coronavirus (H-CoV) strains (OC43, 229E, and NL63), in addition to MERS-CoV and SARS-CoV-1. Brilacidin has consistently inhibited all coronaviruses tested, independent of cell type, at generally attainable systemic concentrations (based on established human pharmacokinetics of IV-administered Brilacidin). We will be updating on IPIX when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with IPIX.

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Disclosure: we hold no position in IPIX either long or short and we have not been compensated for this article.

The post Innovation Pharmaceuticals Inc (OTCMKTS: IPIX) Breaking Out as Biotech Reports Brilacidin Inhibits Omicron, Delta, Gamma and Alpha SARS-CoV-2 Variants Based on In Vitro Testing first appeared on Micro Cap Daily.

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