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.

'We have a deal': insurance may unlock India-U.S. atomic trade
25 Jan 2015 at 3:52pm
By Frank Jack Daniel and Douglas Busvine NEW DELHI (Reuters) - Prime Minister Narendra Modi and U.S. President Barack Obama unveiled a plan centered on insurance on Sunday that they hope will convince U.S. companies to build nuclear power stations in India, but stopped short of demands to soften a liability law. With the 1984 Bhopal gas tragedy still fresh in India's mind, parliament five years ago passed a law that makes equipment suppliers ultimately responsible for an accident, a deviation from international norms that the companies found hard to swallow. India's top diplomat, Foreign Secretary Sujatha Singh, said the new plan was "squarely within our law". "The India nuclear insurance pool is a risk transfer mechanism which is being formed by GIC Re and four other public sector undertakings in the general insurance business in India," foreign ministry joint secretary Amandeep Singh said.


Four tobacco makers accused by French anti-smoking of collusion
25 Jan 2015 at 3:28pm

A French anti-smoking association said Sunday it had filed a case accusing makers of Marlboro, Camel, Lucky Strike and Gauloise cigarettes of colluding to limit prices so smokers won't cut their consumption. "The four big international tobacco industrials work as a cartel, (and) do all they can so that prices rise in a moderate manner to ensure consumption doesn't fall," Martinet told AFP.



WHO pledges reforms as it admits Ebola mistakes
25 Jan 2015 at 3:27pm

The World Health Organization's chief on Sunday admitted the UN agency had been caught napping on Ebola and pledged reforms to avoid similar mistakes in future. Despite turning a corner in the fight against Ebola, there was no room for complacency, WHO head Margaret Chan told a rare emergency session of the agency. "The world, including WHO, was too slow to see what was unfolding before us," she told delegates at only the third emergency session in the history of the WHO.



Japanese rice: the new, safe luxury food in China
25 Jan 2015 at 1:16pm

Now Chinese consumers are adding Japanese rice to the list of everyday foods they will bring in from abroad at luxury-good prices because they fear the local alternatives aren't safe. "Chinese rice farmers use pesticides," said a seller identified as Ying Ying, who started offering Japanese rice on the Taobao online marketplace last August. "Japanese rice isn't polluted by heavy metals." Pollution from industrialization has exacted a heavy toll on China's soil and water. In May 2013, officials in Guangdong province in southern China said 44 percent of rice samples contained excessive levels of the metal cadmium.



After Ebola, WHO to set up contingency fund, develop 'surge capacity'
25 Jan 2015 at 1:03pm

By Stephanie Nebehay GENEVA (Reuters) - The World Health Organization (WHO) said on Sunday it will create a contingency fund and an emergency workforce to respond quickly to crises after strong criticism of the agency's delay in confronting the Ebola epidemic. Director-general Dr. Margaret Chan said at an emergency meeting called to discuss the agency's Ebola response that the outbreak showed the need to strengthen WHO's crisis management and to streamline procedures for recruiting frontline workers. "Member states truly understand that the world does need a collective defence mechanism for global health security." In the past year, 21,724 Ebola cases have been reported in nine countries and 8,641 people have died, according to the WHO, which says West Africa's outbreak is ebbing. "The WHO we have is not the WHO we need, not the WHO we needed to respond to health emergencies of the magnitude of Ebola," Tom Frieden, director of the U.S. Centers for Disease Control (CDC), told the talks.



WHO adopts reforms to repair reputation after bungling Ebola
25 Jan 2015 at 12:15pm

GENEVA (AP) ? The World Health Organization has proposed reforms that could overhaul its structure after botching the response to the biggest-ever Ebola outbreak, a sluggish performance that experts say cost thousands of lives.


Factbox: Obama and Modi unveil India nuclear trade breakthrough
25 Jan 2015 at 8:30am
(Reuters) - U.S. President Barack Obama and Indian Prime Minister Narendra Modi unveiled a deal aimed at unlocking billions of dollars in nuclear trade and deepening defense ties, steps both sides hope will help establish an enduring strategic partnership. Following are some key agreements and points of discussion during Obama's visit: CIVIL NUCLEAR India and the United States struck a deal that could open the door for U.S. companies to build nuclear reactors in India by promising insurance cover to U.S. companies that had shied away from an Indian law placing liability on suppliers in case of an accident. It remains to be seen whether the new pact will satisfy companies such as GE and Toshiba-owned Westinghouse, who had stayed away since a landmark 2008 agreement that ended India's nuclear isolation. STRATEGIC IMPORTANCE India's size, location, fast-growing economy and potential as a democratic counterbalance to China makes the South Asian nation an increasingly important element of U.S. military and commercial strategy.

Imperial Tobacco launches caffeinated mouth strips
25 Jan 2015 at 5:19am
By Martinne Geller LONDON (Reuters) - Imperial Tobacco Group, the world's third largest cigarette maker, is moving into caffeine as more people kick the deadly smoking habit, launching a melt-in-your-mouth strip designed to give an energy boost in seconds. The product, called Reon, comes in flavors such as "grapefruit & zing" and "black currant & fresh". For now it is only sold in the English city of Manchester and online. Developed by Imperial's Fontem Ventures subsidiary, Reon comes in packs of eight strips, each with 20 mg of caffeine, or less than a third of the amount in a shot of Starbucks espresso.


Liberia Ebola vaccine trial "challenging" as cases tumble
25 Jan 2015 at 12:02am

By Ben Hirschler DAVOS, Switzerland (Reuters) - A steep fall in Ebola cases in Liberia will make it hard to prove whether experimental vaccines work in a major clinical trial about to start in the country, the head of the U.S. National Institutes of Health (NIH) said on Saturday. The NIH might have to move some testing to neighbouring Sierra Leone, while regulators could end up approving Ebola shots based on efficacy data from animal tests backed by only limited human evidence, Francis Collins told Reuters. Liberia, once the epicentre of West Africa's deadly Ebola epidemic, has just five remaining confirmed cases of the disease, a senior health official has said.



British nurse makes full recovery from Ebola
24 Jan 2015 at 11:48pm

A British nurse who had been critically ill with Ebola after working in Sierra Leone has been discharged from a London hospital after making a full recovery. Pauline Cafferkey was admitted to the Royal Free Hospital in north London on Dec. 30 after falling ill on her return from Sierra Leone, where she had been working for the charity Save the Children at a treatment centre outside the capital, Freetown.



Added protections for consumer information on health website
24 Jan 2015 at 4:12pm

WASHINGTON (AP) ? The Obama administration appears to be making broader changes to protect consumer information on the government's health insurance website, after objections from lawmakers and privacy advocates.


Avian flu confirmed in commercial turkey flock in California
24 Jan 2015 at 12:59pm
WASHINGTON (AP) ? Federal agriculture officials say they have found avian influenza in a commercial turkey flock in central California.


Tide turning in Ebola fight after hard lessons
24 Jan 2015 at 11:40am

DAKAR, Senegal (AP) ? A top U.N. official in the fight against Ebola greeted just three patients at one treatment center he visited this week in Sierra Leone. Families in Liberia are no longer required to cremate the remains of loved ones to halt the spread of the virulent disease.


UK nurse who contracted Ebola recovers, leaves hospital
24 Jan 2015 at 10:54am
LONDON (AP) ? A British nurse who contracted Ebola while working in Sierra Leone has been discharged from the hospital after making a complete recovery.

Overrated Exercises, And The Moves You Should Do Instead
24 Jan 2015 at 6:50am
No doubt, any exercise is better than no exercise at all.Click Here to see the Complete List of Overrated Exercises, And The Moves You Should Do InsteadSo, while it's silly to say that an exercise is "useless," it's not unfair to say that some exercises are definitely more worthy of your time than others; that some of the more commonly used...

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