Innate Immunotherapeutics (IIL) listed late in 2013 with Australian Ethical taking a cornerstone position in the float. Innate is developing a drug called MIS416 for the treatment of Multiple Sclerosis and specifically the secondary progressive stage of the disease. Andy Gracey, Portfolio Manager at Australian Ethical, says as there are no approved drugs for the treatment of secondary progressive MS and MIS416 has blockbuster sales potential. Australian Ethical is encouraged by initial data from a clinical trial as well as anecdotal evidence showing the drug actually reversed some recently acquired disabilities. With a market cap of only $45 million Gracey sees Innate as a classical high risk and high return investment with upside coming through a partnering or a sales deal with big pharma. In the meantime Gracey is looking for Innate to close the excessive discount at which it trades compared to a number of listed peers. (VIEW LINK)