NanoViricides (NNVC) Restarts Ebola Program; Chardan Capital Maintains 'Buy' Rating

Chardan Capital maintains its Buy rating and $7 price target on NanoViricides, Inc. (AMEX: NNVC) following a recent management update.

Analyst Ling Wang noted, In responding to the healthcare threat from the Ebola virus infection, NNVC decided to restart its Ebola program in August this year. It has started the synthesis of its second-generation anti-Ebola drug candidates. NNVC anticipates to potentially sign collaboration contracts with potential collaborators which have the capacity to conduct research on Ebola. Upon signing contracts, NNVC will be able to start evaluating these candidates in in-vitro studies and subsequent in vivo studies, which will enable NNVC to select optimal drug candidates. We anticipate it will potentially take a few weeks to obtain in vitro data and ~4 to 6 weeks to obtain the in vivo data.

Other key points include:

• NNVC drug candidates have key advantages against viral infection. NNVC’s nanomedicine technology enables the drug candidates to directly attack the virus, despite mutational changes in the virus. This is very important for the current epidemic-causing Ebola virus strain, which has been shown to be mutating rapidly.
• NNVC started the safety/tox studies for its FluCide program. NNVC has chosen BioAnalytical Systems Inc. Toxicology Services (or BASi) of West Lafayette, Indiana to conduct the safety/toxicology studies required for an IND submission of the Injectable FluCide. NNVC has shipped initial FluCide materials to BASi to start the non-GLP toxicity studies in rats.
• FluCide program experiences some delay. NNVC anticipates that it will need as much as 2.5kg of the FluCide drug substance to complete the total toxicity study, which need to be manufactured in the company’s new manufacturing facility. The construction of the new manufacturing facility has been completed and NNVC is currently moving the instruments and equipment in the facility. Given the uncertainty in terms of timing of ramping up manufacturing scales and the company's focus on the Ebola program, we anticipate there would be some delay in the FluCide program. FluCide has been found to be extremely safe and highly effective in combatting a highly lethal influenza A virus infection in mice.

For an analyst ratings summary and ratings history on NanoViricides click here. For more ratings news on NanoViricides click here.

NanoViricides closed at $3.55 yesterday.

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