Market Cap: $41.3 million
Tiny NovaBay (NYSE:NBY) might represent the best growth opportunity of them all with its breakthrough immune-system mimicker, NVC-422. The bacteria-killing compound — which is not an antibiotic — acts like the human immune system to seek and destroy invading organisms.
In culture tube experiments, NBY’s proprietary Aganocide compounds killed every bacteria, fungi, yeast — and even virus — against which they were tested. The company says Aganocide compounds have a good safety profile and are particularly effective against bacteria or fungal strains (like the dangerous staph germ MRSA) that are resistant to multiple drugs.
In September, NovaBay received $2.6 million from dermatology firm Galderma, with whom it is partnering on a treatment for the contagious skin infection, impetigo. NBY also is developing an eye-drop formulation of NVC-422 for adenoviral conjunctivitis, a highly contagious eye infection for which there is no acute treatment. Singapore-based Pioneer Pharma recently invested $2.5 million in NBY in a deal that gives it the right to market the latter’s NeutroPhase wound-cleaning product in China and Southeast Asia.
NBY’s financial metrics have the typical characteristics of a bleeding-edge micro cap — the company lost $5 million last year on $11 million in revenues. But the growth opportunity is substantial if you don’t mind the risk.
As of this writing, Susan J. Aluise did not hold a position in any of the aforementioned securities.