Nuvo Research (TSX:NRI, StockForum), a Mississauga-based specialty pharmaceutical firm engaged in building a portfolio of pain treatment products through internal R&D, licensing and acquisition, announced today that the company's distribution partner, Mallinckrodt, had received FDA approval on Nuvo's pain management product, Pennsaid(R) 2%.
According to the news release, Pennsaid(R) 2% companions the original Pennsaid(R) 1.5% and will be the first twice-per-day applied topical Non-steroidal Anti-inflammatory Drug (“NSAID”) in the U.S. Both products will be marketed and sold by Mallinckrodt.
Nuvo Research Chairman and Co-CEO, Dan Chicoine, commented on the achievement, “The approval of Pennsaid 2% is a significant milestone for Nuvo.”
Chicoine concluded, “We are pleased that the FDA has approved this product for patients suffering from the pain of osteoarthritis of the knee.”
Not everyone was pleased however as stock fell from the initial positive spike in anticipation of the news to 21% under. Some investors were vocal with their displeasure, accusing management of fumbling the ball bringing products to market, naming the fact that Nuvo had taken three attempts to gain FDA approval for Pennsaid 2% as an example of the executive's incompetence.
Conversations grew heated on the Stockhouse bullboards as accusations of mismanagement and outright chicanery were lobbed at the current executive and employees. Some longtime investors even claimed executive family members and company employees were falsely seeding the discussion with praise and support for the current company leadership and corporate direction.
Cooler-headed shareholders considered the FDA approval a lifesaver for Nuvo and anticipated substantial profits in the log run, but commented with some regret on the $220.0+ million in accumulated shareholder losses to date for a company valued at $32.0 million.
Nuvo was in the news recently when the company signed a deal with NovaMedica to market Pennsaid in Russia.
Shares fell 21.91% after the news to $3.67 per share.
Currently there are 8.8m outstanding shares with a market cap of $32.5 million.