Purinex

Purinex is a pharmaceutical company based in Syracuse, New York which has several clinically and commercially promising drugs in development. Purinex wanted to secure a drug for treatment of one of the world’s deadliest diseases. The firm’s technologies are based on its purine drug development platform. Purine was their main focus and was a naturally occurring molecule that played an important role in numerous biochemical processes. They wanted to develop a product that evoked a receptor specific effect without producing undesirable outcomes that could result from interactions with other receptors. In addition, the company was taking the new receptor selective drugs into the first stage of clinical trials. The most promising indications for the new compounds were for the treatment of sepsis and diabetes.

Purinex’s value can be classified into several parts which are research and development, physical building and labor for the company. They have 14 employees under their corporation and own a laboratory located a few miles from the main office. Their research and development consisted of more than 35 patents either pending or issued in the purine field.

The firm’s strategy is to attempt to get a partner or some source of funding so that they can make one of their two possibly ready drugs and then market the remaining drug after they have raised enough funds for the first, and then attempt to have an IPO. Gilad Harpaz, Purinex’s chief financial officer, believed that if a partnership deal could come through, the company would be in an outstanding position to carry out its mission. In addition, in order to have an IPO, securing a deal was a necessity that needed to be dealt with first. Harpaz believed that Purinex could attempt to finance now or wait until it had a partnership deal. But it they waited, the terms of the deal could change and possibly get worse which could put the company in a bind considering they were facing financial problems in the near...