Medical Newswire

Medical Newswire!

Medicine, Healthcare, Medical Research, Hospitals, Management
Press release distribution service
Home | Medical-Newswire.Com:

VFC's Stock House: NovaBay (NBY) May Be Highly Undervalued

(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

or

http://vfcsstockhouse.com/blog/article/-nby-key-deal-marks-a-year-of-swift-progression

Contact VFC's Stock House: vfc@vfcsstockhouse.com

About VFCsStockHouse.com:

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
VFC
240-786-2111
vfc@vfcsstockhouse.com

Source: EmailWire.com


Medical Resources
We are pleased to offer you this exciting, new, and entirely free professional resource. Visit our Free Healthcare resource center today to browse our selection of 600+ complimentary Healthcare magazines, white papers, webinars, podcasts, and more. Get popular titles including:

Eyecare Business
Medical Laboratory Observer
FierceHealthcare

No credit cards, coupons, or promo codes required. Try it today!

Medical Sponsors

Health News
Health News Headlines - Yahoo News
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.


Nurse defies Ebola quarantine in Maine
30 Oct 2014 at 6:17am

FORT KENT, Maine (AP) ? A nurse who vowed to defy Maine's voluntary quarantine for health care workers who treated Ebola patients followed through on her promise Thursday, leaving her home for a bike ride.



Teva optimistic U.S. top court to rule in favor of MS drug patent
30 Oct 2014 at 6:16am

TEL AVIV (Reuters) - Teva Pharmaceutical Industries is optimistic the U.S. Supreme Court will decide in its favor regarding patent protection for Copaxone, its multiple sclerosis treatment, Chief Executive Erez Vigodman said on Thursday. Vigodman said in a conference call with analysts that he expects a decision by late this year or the first quarter of 2015. The court earlier this month appeared closely divided as it weighed Teva's high-profile fight with generic drug manufacturers over patent protections for its $4-billion-a-year drug. ...


Bristol immunotherapy shows promise in lung cancer trial
30 Oct 2014 at 6:12am
By Bill Berkrot (Reuters) - Treatment of advanced squamous cell non-small cell lung cancer (NSCLC) with Bristol-Myers Squibb Co's experimental immunotherapy nivolumab led to a one-year survival rate of 41 percent in a midstage clinical trial, according to data being presented at a medical meeting. While the study called CheckMate-063 did not compare nivolumab with another drug or placebo, the historical one-year survival rate for patients like those in the trial, whose cancer had progressed after treatment with two or more prior therapies, is between 5. ...


Cipla asks India to revoke Novartis patents on respiratory drug
30 Oct 2014 at 6:10am

By Zeba Siddiqui MUMBAI (Reuters) - Generic drugmaker Cipla Ltd said on Thursday it has asked the Indian government to revoke five patents held by Swiss firm Novartis AG on respiratory drug Onbrez and has launched a cheaper copy to boost access in the local market. Cipla alleged that Novartis has had patents on the medicine since 2008 but instead of producing it in India has imported a "negligible quantity" from Switzerland, leading to a shortage of supplies in the Indian market. ...


In U.S. Ebola fight, no two quarantines are quite the same
30 Oct 2014 at 5:58am
By Jonathan Allen and Yasmeen Abutaleb NEW YORK (Reuters) - (This story has been refiled to correct typographical error in first paragraph) In the U.S. battle against Ebola, quarantine rules depend on your zip code. For some it may feel like imprisonment or house arrest. For others it may be more like a staycation, albeit one with a scary and stressful edge. If they are lucky, the quarantined may get assigned a case worker who can play the role of a personal concierge by buying groceries and running errands. ...

Novo Nordisk more cautious on timing of U.S. Tresiba launch
30 Oct 2014 at 4:59am
COPENHAGEN (Reuters) - Novo Nordisk is more cautious in its assessment of when it would launch its Tresiba diabetes drug in the United States, a critical growth driver for the future, according to statements it made in its quarterly report. The U.S. Food and Drug Administration (FDA) refused in February 2013 to approve Tresiba, a long-acting insulin drug, until Novo provided additional tests for potential heart risks. In August, the company said it expected to be able to submit an interim analysis to the FDA during the first half of 2015, leading to a potential launch at the start of 2016. ...

Watch: Early Days of Modern Medicine Shown in Haunting Photos
30 Oct 2014 at 4:31am
Dr. Stanley Burns' archive of medical photography underscores how far modern medicine has come in just over 100 years.


Ebola: Danger in Sierra Leone, progress in Liberia
30 Oct 2014 at 3:28am

FREETOWN, Sierra Leone (AP) ? Liberia is making some progress in containing the Ebola outbreak while Sierra Leone is "in a crisis situation which is going to get worse," the top anti-Ebola officials in the two countries said.


India's universal healthcare rollout to cost $26 billion: official
30 Oct 2014 at 3:26am
By Aditya Kalra NEW DELHI (Reuters) - India's universal health plan that aims to offer guaranteed benefits to a sixth of the world's population will cost an estimated 1.6 trillion rupees ($26 billion) over the next four years, a senior health ministry official said. Under the National Health Assurance Mission, Prime Minister Narendra Modi's government would provide all citizens with free drugs and diagnostic treatment, as well as insurance cover to treat serious ailments. The proposed plan would be rolled out in phases from April 2015 and will cover the entire population by March 2019, C.K. ...


Fujifilm cautious on Avigan profitability, eyes Ebola spread
30 Oct 2014 at 3:17am

By Ayai Tomisawa TOKYO (Reuters) - Japan's Fujifilm Holdings Corp said it was difficult to estimate the profitability of its influenza drug Avigan, which has been earmarked to fight Ebola, given the uncertainty over the spread of virus, a company executive said on Thursday. Fujifilm has said it is expanding the production Avigan anti-influenza. France and Guinea plan to conduct clinical trials of Avigan 200 mg tablets, made by Fujifilm group company Toyama Chemical Co, in Guinea to treat Ebola in mid-November. ...



Bayer says animal health unit large enough
30 Oct 2014 at 3:14am

FRANKFURT (Reuters) - Bayer sought to dampen expectations that any proceeds from a separate listing of its plastics unit would be used for takeover deals to bolster its animal health activities. "We have an animal health business that is not small, with good products in the market," Chief Executive Marijn Dekkers said in a conference call. "We believe we have a good animal health business that can very well operate on its own." Any proceeds from a separate listing of the Bayer MaterialScience division might be used to cut debt. ...



In Guangdong, nervy Chinese ramp up Ebola watch
30 Oct 2014 at 3:00am

By Yimou Lee HONG KONG (Reuters) - Chinese authorities have identified the southern province of Guangdong, home to Asia's biggest African population, as a frontline in their efforts to prevent the deadly Ebola virus from entering mainland China. The province bordering Hong Kong has proven susceptible to infectious diseases in the past, shouldering a large share of SARS and bird flu cases, prompting local authorities to take no chances with Ebola. ...



Bayer says eyeing more deals after bulking up consumer care
30 Oct 2014 at 2:25am

FRANKFURT (Reuters) - Bayer is eyeing further takeover deals after wrapping up the acquisition of Merck & Co. Inc.'s consumer health business, the German drugmaker's chief executive said on Thursday. "We are looking to expand our business in the future through both organic growth and acquisitions," CEO Marijn Dekkers said, according to the script of a speech to be held at a media call on the group's third-quarter results on Thursday. (Reporting by Ludwig Burger; Editing by Kirsti Knolle)


Saudi Arabia finds six new MERS cases as outbreak grows
30 Oct 2014 at 12:57am
RIYADH (Reuters) - Saudi Arabia said late on Wednesday it had detected six new cases of the deadly Middle East Respiratory Syndrome (MERS) in 24 hours, the biggest daily jump for months with officials blaming lax hospital procedures. The recent surge in cases, now numbering 32 since the start of October, has been focused in Riyadh and the western city of Taif, but it remains far less extensive than an outbreak in April and May that infected hundreds. MERS causes coughing, fever and sometimes pneumonia, killing around 40 percent of its victims. ...

Liberians fast, pray for three days to break Ebola "curse"
30 Oct 2014 at 12:21am
MONROVIA (Reuters) - Liberians began three days of fasting and prayers on Wednesday to seek salvation from the "curse" of the Ebola epidemic, which has killed 2,705 people and infected 4,665 more in the West African country. The National Christian Ebola Task Force, an organisation formed in September by different Christian denominations, urged Liberians to fast from dawn-to-dusk over the next three days. "Ebola is a virus from the devil. It's killing us because we have turned our back to God," Reverend David G. Benitoe, a representative of the task force, told a news conference. ...

Pharmanewswire.com is part of GropWeb Network, online properties of GroupWeb Media LLC. Copyright GroupWeb Media LLC. All Rights Reserved.

For unlimited press release distribution for $99 per month, call (281) 645-4086 or start posting your press releases online at EmailWire.com. CityRegions.Com is part of GropWeb Network, online properties of GroupWeb Media LLC. Copyright 2012 GroupWeb Media LLC. All Rights Reserved.


GroupWeb Media Network
AfricaNewswire.Net | AppleNews247.Com | AsiaNewsWire.Net | Aviation-NewsWire | Energy Industry | EstateNewsWire | Entertainment-NewsWire.com | Food Beverage News | Glamour NewsWire | Health NewsWire | Hosting NewsWire | i-Auto NewsWire | i-Business News | EuropeNewsWire.Net | iCameroon.com | i-Canada-News.Com | i-SoftwareNews.com | iT-NewsWire.Com
| InvestorsNewsDesk.Com | i-TravelNewsWire.Com | LegalLaw247.com | Medical-NewsWire.com | MiningNewsWire.net | MoneyNewsWire.Net | Movie-Stars-News.Com | PayDayNews247.Com | PharmaNewsWire.Com | Publishing-NewsWire.Com | Shopping-NewsWire.com | Telecom-NewsWire.Net | Transportation-News.Com | USGovernment-News.Com | WebPosters.Net | Wireless-NewsWire.Com |
Medical-Newswire.com - Medicl Newswire and Press Release service of GroupWeb Media LLC