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Keep an eye on NovaBay Pharmaceuticals (AMEX: NBY) to close out 2011, as trading volume has quietly been picking up steam, as noted here last week. The daily trading average for NBY is under 50,000, but well more than that number of shares were traded during each trading session last week, culminating with over 300,000 shares trading hands on Friday.

The new week opened up right where last week left off, with just under 500,000 shares trading hands on Monday - more than ten times the daily trading norm.

NovaBay may be again starting to attract attention for the potential of its Aganocide compounds (NVC-422), for which multiple trials are ongoing and/or planned in the treatment of various infectious indications. The Aganocide technology could be a game-changer in the treatment of infections conditions, given that there is believed to be little - if any - chance of a patient developing resistance.

One of medicine's growing dilemmas of the current day is the ever-growing resistance to standard antibiotics, and NovaBay just might have the solution.

Although the Aganocide technology may be attracting new interest, it's next year's planned commercial launch of NeutroPhase into the six-million-patient-strong chronic wound market that might be behind the recent volume boost.

NeutroPhase is a new class of broad-spectrum antimicrobial and has already been cleared for market by the FDA. NovaBay is looking to partner the product before the official launch in 2012, and any revenue generated from sales would help to offset the costs associated with the continued development of the Aganocide compounds. If the current pace of development stands, the company will have three Phase III trials ongoing by early 2013.

With the potential of NovaBay's technology to hit the market as early as 2012, this past week's volume burst could just be the beginning of more to come.

Disclosure: Long NBY.

Source: NovaBay's Game-Changing Technology May Be Attracting Attention