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- Nuvo Research has reached a full settlement with Mallinckrodt Inc. relating to Nuvo's license to Mallinckrodt on the right to market and sell Pennsaid® and Pennsaid® 2% in the U.S.
- The settlement calls for all U.S. rights to Pennsaid® and Pennsaid® 2% to be returned to Nuvo, along with a payment of $10 million.
- The company is now free to renegotiate a licensing deal with a new company that should bring in even more non-dilutive capital in the form of an upfront payment.
- Other recent important news includes the completion of enrollment in the Phase 2 trial of WF10 for the treatment of allergic rhinitis.
- At the current stock price, the market doesn't fully appreciate the potential of Pennsaid® 2% or WF10; thus, Nuvo remains a top pick in the small cap specialty pharmaceutical space.
- Mallinckrodt Nuvo’s licensee for both Pennsaid® 1.5% and Pennsaid 2%, is in the process of converting Pennsaid 1.5% patients and prescribers to Pennsaid® 2%.
- Most recent IMS data shows Pennsaid® 2% prescriptions exceeded Pennsaid 1.5%. For 2014, we believe Pennsaid 2% sales could approach $29 million.
- We continue to believe Nuvo has a very strong case in their litigation with Mallinckrodt, and that a likely outcome will result in significant cash inflow to Nuvo.
- We believe Nuvo Research is significantly undervalued at today's price and offers upside of 200% based on our analysis.
- Nuvo Research, Inc. is a specialty pharmaceutical company with a diverse portfolio of marketed products (Pennsaid®, Pennsaid® 2%, Synera®, Pliaglis®).
- Beside the marketed products, the company also has an immunotherapy treatment (WF10) for allergic rhinitis in Phase 2 testing.
- We feel that Nuvo has tremendous upside. We believe investor should ‘Buy’ the shares today, and our target is $7.50 per share.