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.


5 Ways to Add Health and Fitness Into Your Busy Schedule
28 May 2015 at 5:49am

Summer's here, and it's time to get back into beach body shape. While optimum health and fitness are important to many, the demands of work, home and personal life can leave one feeling like there's just not enough time. However, just a few minutes of exercise a day can actually improve one's health. Whether it's a simple five-minute walk or an...


French, US biochemists win top Spanish prize for science
28 May 2015 at 5:25am
MADRID (AP) ? Biochemists Emmanuelle Charpentier from France and Jennifer Doudna from the United States have been awarded Spain's Princess of Asturias scientific research award for their work in biotechnology.


South Korea's tally of MERS cases at seven; one suspected patient heads to China
28 May 2015 at 5:07am

South Korea's tally of patients of Middle East Respiratory Syndrome (MERS) rose to seven on Thursday, with authorities saying one suspected victim skipped out of voluntary home quarantine to take a trip to China. A rise in MERS cases has stirred alarm in South Korea, with health authorities being criticized for not moving quickly and effectively enough to quarantine suspected patients. Two new victims are believed to have caught the virus from the first case confirmed last week, a 68-year-old man who had traveled to Bahrain in April and May, and returned to South Korea via Qatar.


New drugs from Bristol, Merck at forefront of cancer meeting
28 May 2015 at 4:16am
New data to be released this weekend should help deepen the understanding of how broadly new drugs that unleash the body's immune system to fight cancer can be used. Results from key clinical trials will be presented starting Friday in Chicago at the annual meeting of the American Society of Clinical Oncology. "It's going to be an important meeting to get some more (details) on the PD-1 and PD-L1 drugs," said Morningstar analyst Damien Conover. Bristol's Opdivo, or nivolumab, was approved by the U.S. Food and Drug Administration in December to treat advanced melanoma.


South Sudan hunger at its worst since independence in 2011-experts
28 May 2015 at 4:02am

By Katy Migiro NAIROBI (Thomson Reuters Foundation) - More than 40 percent of South Sudan's 11 million people need food aid, the latest analysis shows, the highest hunger levels recorded in the world's youngest country, where fighting erupted 18 months ago. Conflict, high food prices and the worsening economy have pushed 4.6 million South Sudanese into hunger, according to the analysis carried out by hunger experts from aid agencies and the government. The number has almost doubled since the start of the year, and those facing hunger in the northeast African nation include 874,000 children under five, the Integrated Food Security Phase Classification (IPC) analysis showed.


Women in Business Q&A: Dr. Caroline Cederquist, M.D.; author of The MD Factor
28 May 2015 at 2:46am
Caroline read her first statistics about obesity at a very young age. Growing up, the majority of Caroline's family was overweight. Through her knowledge of weight management, she is proof that you can manage your genetic predispositions through healthy lifestyle changes and has encouraged her to help America incorporate health into their...


India's Modi to perform yoga at mass public event
28 May 2015 at 2:32am

Indian Prime Minister Narendra Modi will perform yoga at a public event next month, part of his international drive to increase participation in the ancient Indian discipline.Modi will practice physical poses and breathing control at the event on the country's main ceremonial avenue, in the capital New Delhi, on June 21, government and ruling party officials said. The United Nations declared June 21 the first International Day of Yoga after adopting a measure proposed by the Modi government. Modi used his first speech at the U.N. General Assembly in September to call for such a day to be recognized.



Two glasses of wine per day could be bad for seniors' hearts
28 May 2015 at 2:05am

While alcohol in small doses could indeed have protective effects on the cardiovascular system, a new study suggests that in greater quantities it can also be toxic for the heart, especially among seniors. According to a new scientific study published on May 26 in the journal "Circulation: Cardiovascular Imaging," exceeding two glasses of wine per day for men, and one per day for women, could alter cardiac function and structure. Dr. Scott Solomon, a professor at Harvard Medical School, and his team of researchers analyzed data on the alcohol consumption of 4,466 men and women with an average age of 75.


First hearing in House lawsuit over Obama health law
28 May 2015 at 12:33am
WASHINGTON (AP) ? Obama administration attorneys are urging a federal judge to throw out an election-year lawsuit by House Republicans over the president's health care law.

NIH: Major study finds earlier HIV treatment improves health
28 May 2015 at 12:25am
WASHINGTON (AP) ? A major international study sought to settle how soon is best to start HIV treatment ? and the advice is don't delay.


H5N1 bird flu confirmed on two farms in Ghana
28 May 2015 at 12:11am

Tests on poultry at two farms in Ghana, including one in the capital, Accra, have confirmed the presence of H5N1 avian flu, the country's state research institute said on Wednesday. The Noguchi Memorial Institute for Medical Research said five of six samples tested positive for the disease earlier this month. Avian flu has already struck several other countries in West Africa, including Ghana's neighbours Niger and Burkina Faso.



Leave cancelled for India's doctors as heat wave kills 1,300
27 May 2015 at 10:07pm

A heat wave in India has killed at least 1,371 people this week as temperatures soar above 47 Celsius (116.6 Fahrenheit), and doctors' leave has been cancelled to help cope with the sick. May and June are India's hottest months, with temperatures regularly pushing above 40 Celsius. The death toll in the worst affected states of Andhra Pradesh in the southeast and nearby Telangana is more than double the toll from a shorter hot spell there last year, officials said, with most of those killed elderly or labourers suffering sunstroke or dehydration.



Self-healing robots take step towards disaster relief
27 May 2015 at 9:18pm

Scientists on Wednesday said they had created a small robot that can recover from damage, in a step towards machines that mimic the remarkable adaptive powers of humans and animals. The feat could one day lead to first-responder robots which can cope with dangers that today would put them out of operation, they said. "The idea is to have robots that can survive in hostile environments such as a Fukushima-type nuclear disaster," said Jean-Baptiste Mouret of the Pierre and Marie Curie University in Paris.



S. Korea reports seven MERS cases, one suspect flies to China
27 May 2015 at 8:33pm

South Korea said Thursday it had confirmed two more MERS virus infections, bringing the total number of cases to seven, as one suspected victim ignored warnings and flew to China on a business trip. The infections, all traced to the original case of a 68-year-old man diagnosed on May 20 after returning from a trip to Saudi Arabia, have triggered public concerns of a wider outbreak. Middle East Respiratory Syndrome (MERS) is considered a deadlier but less infectious cousin of the Severe Acute Respiratory Syndrome (SARS) virus that appeared in Asia in 2003 and killed hundreds of people, mostly in China.



U.S. military mistakenly ships live anthrax to labs in nine states
27 May 2015 at 7:45pm

By Phil Stewart and Sharon Begley WASHINGTON/NEW YORK (Reuters) - The U.S. military mistakenly sent live anthrax bacteria to laboratories in nine U.S. states and a U.S. air base in South Korea, after apparently failing to properly inactivate the bacteria last year, U.S. officials said on Wednesday. The Pentagon said there was no known suspected infection or risk to the public. Twenty-two personnel at the base in South Korea were also given precautionary medical measures although none have shown sign of exposure, the U.S. military said.


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