Resolve: Early answers, early exits

Resolve Therapeutics LLC believes it has a business model that will attract investors by allowing them to exit early in the clinical development process. The company plans to develop its RSVL-125 through Phase IIa testing for lupus before licensing it to a pharma and then distributing deal proceeds to investors and management.

CEO James Posada expects Resolve can develop RSVL-125 through a proof-of-concept Phase IIa trial with $10-$15 million. He believes such a clinical package would attract $40-$50 million up front from a pharma licensee, thus giving investors a three- to fourfold return on their money before milestones and royalties. The company didn't give a timeline on when the Phase IIa trial would be done...