LifeTech Capital Recommends NovaBay Pharmaceuticals

Investment research firm LifeTech Capital has recommended another biotech stock, reports Mike Havrilla of Seeking Alpha. Stephen Dunn of LifeTech rated NovaBay Pharmaceuticals a “strong speculative buy.” NovaBay of Emeryville, Calif., develops antimicrobial products for a variety of infections, including conjunctivitis, MRSA, the skin disease impetigo, and urinary tract infections.

An excerpt from Dunn’s report:

NovaBay’s Aganocide compounds are proprietary, synthetic N-chlorinated antimicrobial molecules that mimic the human body’s natural antimicrobial defenses generated within neutrophils (white blood cells). Aganocides may deliver the same or better efficacy than antibiotics without triggering antibiotic-resistance. We believe NovaBay represents a significant opportunity in the drug-resistant pathogen sector.

We expect several catalysts for NovaBay shares as various human clinical trials complete. Phase IIa data for Conjunctivitis (“pink eye”) partnered with Alcon (NYSE:ACL), Phase I data for Acne partnered with Galderma (Nestle/L’Oreal) and Phase IIa data for Catheter-Associated Urinary Tract Infections (CAUTI) which is being developed internally. Furthermore, we expect data from the Phase IIa for Impetigo partnered with Galderma S.A.

In addition, we expect several new indications to begin human clinical trials with partner Alcon for Otitis Externa (swimmer’s ear), Contact Lens Solution and Sinusitis (sinus infection) as well as NovaBay’s internal Onychomycosis (nail fungus) program.

We believe NovaBay is an exciting biotechnology company with “best-in-class” candidates that appear effective against bacterial, viral, fungal and biofilm targets without generating new, drug-resistant strains. NovaBay’s partnerships with Alcon (NYSE:ACL) and Galderma (Nestle and L’Oreal) along with NovaBay’s own internal programs result in a biotechnology company with multiple shots-on-goal. Our Strong Speculative Buy rating and 12-18 month Price Target of $4.50 is based on a 30x multiple on projected 2012 earnings and discounted 50% to adjust for risk.

Download the rest of the report at the BioMedReports research download section.

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