SA News • Fri, Oct. 17
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Nuvo Research: An Overlooked Stock With Great Upside Potential
- 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.
Investment In Nuvo Research Looks Like An Easy Call
- 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.
Fri, Oct. 17, 10:17 AM
- Horizon Pharma plc (HZNP +5.3%) acquires the U.S. rights to Nuvo Research's (OTCPK:NRIFF) Pennsaid (diclofenac sodium topical solution) 2% for the treatment of pain due to osteoarthritis of the knee for a one-time payment of $45M in cash.
- Pennsaid 2% is a second generation version of Pennsaid 1.5%. Effective January 1, 2015 Pennsaid 1.5% will no longer be marketed in the U.S.
- Nuvo retains its existing rights to both products ex-U.S.
- The FDA approved Pennsaid 2% on January 16, 2014.
Fri, Jan. 17, 7:32 AM
- The FDA has approved Mallinckrodt's (MNK) NDA for Pennsaid 2%, a topical non-steroidal anti-inflammatory treatment for osteoarthritis of the knee.
- U.S. sales and marketing rights for Pennsaod are licensed to Mallinckrodt by Nuvo Research (NRIFF).
- The approval comes with warnings about the risks of non-steroidal anti-inflammatories to the heart and the rest of the cardiovascular system, and to the liver. (PR)
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