Home | Medical-Newswire.Com:
(EMAILWIRE.COM, March 21, 2012 ) New York, NY -- NovaBay Pharmaceuticals (NBY) released news this week that offers to broaden the scope and reach of the company's Aganocide compounds, which are being positioned as anti-infectives and could potentially replace modern day antibiotics as resistance to such treatment grows.
On Tuesday NovaBay announced a deal with Virbac Animal Health to bring its technology to the veterinary market. According to the agreement, NovaBay will receive an upfront payment - and some additional support for research and development - while Virbac will retain the option to license any of the Aganocide compounds that are successfully applied to treating veterinary indications.
The deal could provide NovaBay with a steady revenue stream in the future if Virbac exercises its licensing option. According to the Tuesday press release, if the option is exercised,
"NovaBay may receive additional payments, which include an exercise fee as well as development and pre-commercial milestones for a line of veterinary products. NovaBay will also receive royalties on sales of any successfully commercialized Aganocide products to arise from this agreement."
Few companies are going to become superpowers in the field of medicine on treating veterinary indications alone, but the deal brings some attention back to NovaBay and gives us another chance to consider this company's technology on the open market - should the pipeline products make it that far.
It also gives us the opportunity to determine whether or not the current market capitalization for NBY justifies that pipeline potential, which, in the opinion of this writer, the determination is "probably not."
First, let's revisit the problem of antibiotic resistance.
When introduced into society seventy years ago, antibiotics changed the shape of medicine, and provided what - at the time - was considered a huge leap forward in treating bacterial infections. Having been so widely-used since then, however, the infectious organisms against which the antibiotics are administered have grown increasingly resistant, and sometimes immune, to today's antibiotic treatments.
The Centers for Disease Control and Prevention considers the developing resistance to antibiotics as a "crisis", noting on its website that, "These drugs have been used so widely and for so long that the infectious organisms the antibiotics are designed to kill have adapted to them, making the drugs less effective. People infected with antimicrobial-resistant organisms are more likely to have longer, more expensive hospital stays, and may be more likely to die as a result of the infection."
Medical professionals themselves understand the growing risks associated with antibiotic resistance, as noted by Dr. Marc Siegel, associate professor of medicine and medical director of Doctor Radio at NYU Langone Medical Center, this week in an article published on FoxNews.com. Dr. Siegel also notes that Doctors continue to over prescribe these treatments, thereby strengthening the resistance of the surviving bacteria and creating new "super colonies" that will eventually be uncontrollable.
This dilemma has created a huge monetary burden on the global health care system and is possibly setting up a one-time "miracle cure" as irrelevant.
That's where NovaBay comes into the picture.
NovaBay has developed, through its proprietary Aganocide compounds, a pipeline of synthetic anti-infectives that are designed to mimic the body's own defenses against infection. Namely, these synthetic molecules, based on the Aganocide compound NVC-422, essentially act in the same manner and processes of a body's white blood cells and not as antibiotics, therefore significantly reducing the risk of a resistance being developed.
The potential of such a technology has market-moving implications, and under the circumstances, it's understandable why NBY could be tagged with an 'undervalued' label.
There are, however, a couple of reasons why investors may not yet have fully embraced the company and its technology. The first reason may be the most obvious one; that NovaBay still has nothing beyond Phase II, and therefore any investment in the company is highly speculative and risky at this point, which is a fair assessment.
That said, the best deals in biotech are the ones that are found early, when patience is needed as the trial results pan out. It's also worth noting, however, that he trend of staying away from speculative "Phase II" investments may be shifting.
Take Lpath, Inc. (LPTN), for example. Lpath also has a novel and potentially groundbreaking technology in the works, but Pfizer (PFI) has bucked the Phase II label of the company and jumped in with a very significant partnership.
CellDex Therapeutics (CLDX) is another one that has traded very highly during its Phase II stages, even when Pfizer decided to divorce itself from a partnership with the company.
In both cases, investors may have started to become clued in to how much market potential is contained within those respective pipelines and tossed the standard "wait until Phase III" strategy to the side. As investors with similar strategies in mind research NovaBay, the same potential for price appreciation exists; especially give the fact that NBY has a powerhouse partner of its own in Galderma SA, with whom NovaBay is developing a treatment for the highly-contagious skin condition, Impetigo.
Another reason why NovaBay may be missing the mark in terms of market cap right now, and this one may be more relevant than the last, is that an earlier clinical trial conducted with then-partner Alcon in the treatment of adenoviral conjunctivits - better known to the average Joe as "pink eye" - failed.
Shares slumped badly after that news hit the presses and have only barely recovered since.
On the flip side to the endpoint miss, however, which sent sent investors running for the doors, is that a further look at the data from the same trial did show that efficacy was demonstrated against Epidemic Keratoconjunctivitis (EKC), possibly the most contagious form of the infection, and which often threatens a victim's vision.
Based on that data, trials have continued, but the fact that the company has a failed trial under its belt most certainly deters some investors from jumping back in, at least until they see more results.
A Phase IIb trial for this indication is expected to begin within months, while another Phase II trial for the Impetigo condition is also slated for this year.
Results from 'Part A' from a trial testing NVC-422 as a treatment for urinary catheter blockage and encrustation (UCBE) have already rolled in, with results from 'Part B' also due within months.
The pending trial results provide some short term catalysts, but another catalyst due for this year could be the one that puts NovaBay on the map.
A commercial launch is planned for the short to mid term for NeutroPhase, NBY's first FDA-cleared product and a treatment for chronic wound in both hospital and personal care. A successful launch for NeutroPhase could alleviate many of the monetary concerns normally associated with a small company bringing its pipeline through trials, and just a couple of months ago the company announced its first strategic partner for NeutroPhase.
Having a product already on the market and bringing in revenue will go a long way to validating this small company in the eyes of potential investors, especially if the NeutroPhase commercial launch goes off without a hitch.
Based on the pending trial catalysts, the commercial launch of NeutroPhase, and most importantly, the potential of NVC-422 products on the open market as eventual substitutes for antibiotics, NBY may still be trading under the radar and could still be lightly valued, when all is considered.
By 2013 the NovaBay could have three Phase III trials ongoing with an FDA approved product on the market.
If that's the case, it's a fair bet to assume that the market cap will be significantly higher than thirty five million at that point.
For an example of how a shift from Phase II to Phase III can effect a market cap, one could look at Keryx BioPharmaceuticals (KERX). During the early to mid stages of Phase II, the KERX market cap was similar to NBY's now, but when Phase II trials were successful and Phase III came along?
Prices quickly quadrupled.
NovaBay's target market of anti-infective care is a multi-multi-billion dollar market annually, and NBY could quickly penetrate that market, as Doctors are currently looking for a way around antibiotic resistance.
As I've previously discussed, this company may be at the right place at the right time. For investors being in the right place at the right time means being "in" before any price run starts, and it's possible that NBY has a ways to move, should the pending catalysts turn out positive.
Disclosure: Long NBY.
For more information and commentary regading NBY, visit: http://vfcsstockhouse.com/blog/article/-novabay-may-be-in-the-right-place-at-the-right-time-with-an-answer-for-antibiotic-resistance
Contact VFC's Stock House: firstname.lastname@example.org
VFC's Stock House offers research-based investment information, insights and ideas on a variety of different companies in numerous sectors, with a focus on biotech stocks and healthcare.
For full reports on Celsius Holdings and other companies visit: http://vfcsstockhouse.com
Follow VFC's Stock House on Twitter: https://twitter.com/#!/VFCsStockHouse
'Like' VFC's Stock House on Facebook: http://www.facebook.com/pages/VFCs-Stock-House/143724412345213
For full disclaimer visit: http://vfcsstockhouse.com
VFC's Stock House
Health News Headlines - Yahoo News
Get the latest health news headlines from Yahoo News. Find breaking health news, including analysis and opinion on
top health stories.
Faulty breast implants: French court upholds 4-year sentence
2 May 2016 at 10:48am
AIX-EN-PROVENCE, France (AP) ? A French appeals court on Monday upheld a four-year prison sentence against a maker of fraudulent breast implants that were given to tens of thousands of women worldwide from 2001 to 2010.
Psychotherapy video chats may help with ?chemo brain?
2 May 2016 at 10:05am
By Kathryn Doyle (Reuters Health) ? Memory problems that plague cancer survivors after chemotherapy can sometimes be improved with a type of psychotherapy delivered by video chat, a new study suggests. ?We don?t really know the prevalence, but maybe 40 to 50 percent of individuals (treated with chemotherapy) have long-term mild memory problems with verbal memory, recall of conversations, what one read,? said lead author Robert Ferguson of the University of Pittsburgh Cancer Institute. ?Remembering where you parked your car or what was said in a meeting, these daily routine tasks are where failures occur,? said Ferguson, who conducted the research while at the Eastern Maine Medical Center and Lafayette Family Cancer Center in Bangor, Maine.
Study: Football concussions and resuming play vary by age
2 May 2016 at 9:26am
CHICAGO (AP) ? Younger football players are more likely to return to the field less than a day after suffering concussions than those in high school and college, according to a new study.
For Evil to Prevail
2 May 2016 at 8:38am
I can't tell if Edmund Burke and I would agree or disagree about most things; the politics and issues of his day were so different from our own, I'm not sure what kind of political animal he would be branded today. In his day, he was labeled a staunch conservative. I imbibed what may be his signature contention early, and fully, even so, and...
Faulty breast implant company founder faces jail in France
2 May 2016 at 7:55am
Aix-en-Provence (France) (AFP) - A French appeals court on Monday upheld a four-year prison sentence for the founder of PIP, the manufacturer of defective breast implants that caused a health scare across Europe and South America. The court in the southern city of Aix-en-Provence confirmed the fraud convictions against Poly Implant Prothese (PIP) founder Jean-Claude Mas, 76. The court also upheld the 2013 trial's order that Mas pay 75,000 euros ($86,000) and be banned for life from working in medical services or running a company.
China to investigate Baidu over student's death, shares dive
2 May 2016 at 7:36am
China's Internet regulator said on Monday it will send a team to investigate Baidu Inc over the death of a university student who used the Chinese search engine to look for treatment for his cancer. Wei Zexi, 21, died last month of a rare form of cancer. Before dying, Wei accused Baidu online of promoting false medical information, as well as the hospital for misleading advertising in claiming a high success rate for the treatment, state radio said.
Battle of the Health Data Ecosystems
2 May 2016 at 7:01am
With the announcement that Finland-based Nokia acquired France-HQ'd Withings in late April 2016, the tipping point for a new era of health data ecosystems began.This deal, described by Ramzi Haidamus of Nokia Technologies as more of a "reverse takeover," is part of the growing health/care Internet-of-things, where our health and medical...
Supreme Court won't review appeal from POM juices
2 May 2016 at 6:43am
WASHINGTON (AP) ? The Supreme Court is leaving in place a court ruling that found advertising claims of the health benefits of POM Wonderful juices were deceptive.
U.S. top court rejects POM Wonderful appeal over advertising
2 May 2016 at 6:36am
By Lawrence Hurley WASHINGTON (Reuters) - The U.S. Supreme Court on Monday rejected POM Wonderful's challenge to a 2010 Federal Trade Commission finding that the pomegranate juice maker's advertising was misleading in claiming its products fight ailments such as heart disease, prostate cancer and erectile dysfunction. The Supreme Court left in place a January 2015 ruling by the U.S. Court of Appeals for the District of Columbia Circuit largely upholding the government's action. The U.S. Court of Appeals for the D.C. Circuit ruled that POM Wonderful could not advertise that its pomegranate drinks treat or prevent heart disease or other medical conditions unless it has proof, upholding an FTC order.
Clinton begins Appalachia tour in Trump-friendly coal country
2 May 2016 at 5:35am
By Amanda Becker and Valerie Volcovici WASHINGTON (Reuters) - U.S. Democratic presidential front-runner Hillary Clinton begins a two-day tour on Monday through rural, traditionally coal-reliant parts of the eastern Appalachian region where Republican rival Donald Trump?s pro-coal, anti-trade message has resonated with economically distressed voters. Clinton, in a move to reclaim her early pledge to focus on helping the struggling region resuscitate its economies, will meet the head of a local steel workers union, retired mine workers and others in Kentucky, West Virginia and Ohio affected by declining coal and steel prices.
Samsung's sound idea for helping premature babies
2 May 2016 at 5:24am
Korean smartphone maker Samsung is developing an app called "Voices of Life" that could help premature babies develop while in an incubator.
Monkey bars alert: Playground concussions are on the rise
2 May 2016 at 5:22am
CHICAGO (AP) ? Playground concussions are on the rise, according to a new government study, and monkey bars and swings are most often involved.
Regeneron pain drug clears late-stage trial
2 May 2016 at 5:13am
(Reuters) - Drugmaker Regeneron Pharmaceuticals Inc said on Monday its experimental drug to treat moderate-to-severe osteoarthritis pain was successful in a late-stage study. The drug, fasinumab, was tested on 421 patients with a history of inadequate pain relief or intolerance to current pain killers. After 16 weeks, patients given fasinumab reported less pain, as measured on a physician-grade scale, than those given a placebo, Regeneron said in a statement. Current treatments for pain management include non-steroidal anti-inflammatory drugs, anti-seizure agents, and opiates. ...
How To Create The Perfect Power Bowl
2 May 2016 at 4:54am
What if I told you that it was easy - yes, easy! - to make a perfectly balanced, delicious meal at home? Not only that, but what if I said it would be Instagram-worthy beautiful? Enter the Power Bowl, a fool-proof way to pack in nutrients, use a variety of leftovers, and create a wonderful blend of flavors and textures all in one bowl. When it...
U.S. companies starting to see relief from pains of strong dollar
2 May 2016 at 4:33am
The sluggish U.S. economy is proving to be a relief for U.S.-based companies struggling under the weight of the strong dollar and could lead to more positive earnings surprises in the weeks ahead. Companies including Whirlpool Corp , Johnson & Johnson , and Xerox Corp have told investors over the last two weeks that they see the pain from the dollar's two-year rally easing, allowing them in some cases to beat earnings estimates and raise their outlooks for the rest of the year. Less well-known companies are benefiting, too: insect repellent company Rollins Inc said the weaker dollar was a key reason why it beat estimates when it announced its quarterly results Wednesday, while medical supply maker C.R. Bard Inc cited the weakening of the dollar when it announced that it was raising its guidance for the year.