NovaBay entering transformational period, say Edison analysts

US biotech firm NovaBay Pharmaceutical (Nasdaq: NBY) is entering a potentially transformational 12-month period, say analysts at Edison Equity Research, who note that multiple Phase IIb trial read-outs offer major share price catalysts and positive data would provide clear validation of its novel anti-infective technology.

The firm’s lead compound NVC-422 is being studied in three significant unmet needs and affirmative results could lead to considerable partnering demand. “We believe the potential in NovaBay’s Aganocide compounds, with proven ability to overcome and avoid resistance issues that plague the anti-infective market, is not reflected in its current market capitalization,” the analysts say, adding: “We value NovaBay at $53 million, or $1.86 per share, based on a sum-of-the-parts DCF valuation.

Biological and technological distinctiveness