NanoViricides (NYSE-A:NNVC) has been awarded a ‘Buy’ rating and $6.50 price target by analysts at EF Hutton following the release of positive data on the anti-influenza A/H3N2 activity of its therapy NV-387.
In a lethal animal model of lung infection, NV-387 treatment showed a longer survival lifespan of 15 days compared to eight to 11 days for three approved anti-influenza drugs, the analysts highlighted.
“NV-387 likely could have effectiveness against most types of Influenza A viruses,” they wrote in a note to clients dated May 7. “NanoViricides (NYSE-A:NNVC) believes that its NV-387 could have strong antiviral activity against the bird flu H5N1 virus and more work will continue on that.”
They highlighted that the company is also developing NV-387 for RSV and Smallpox and that it has other drugs in the pipeline including NV-HHV-1 for Shingles, Herpes HSV-1 and HSV-2.
“We believe that investors are not appreciating or aware that NanoViricides’ platform technology might possibly generate a safe antiviral superdrug to handle multiple types of sickness/disease outbreaks and strains with one single drug,” they wrote.
They added that they remain constructive on the company generating revenue from NV-387 for COVID-19, pending possible approval, but focus more on the company’s other drug development programs.
“Our model is based on NanoViricides extending its platform to other potential diseases and viruses,” they wrote. “For now, we are most hopeful for potential revenue generation from Herpes (HSV Type 1 & Type-2), RSV, Smallpox or Mpox (Monkeypox).”
The analysts noted several risks to the achievement of their price target and stock performance, including safety, efficacy, clinical challenges, operational, regulatory, equity dilution and competitive challenges which could impact the commercial potential of NanoViricides’ development drugs.
“The COVID-19 life-saving drug might not attract enough patients for hospitalization trials,” they wrote. “The declining number of cases and illness severity of the COVID-19 virus, and any improved vaccine effectiveness, are risks.”
They also pointed out that there is likely to be higher cash burn between July 2024 and June 2025 from NanoViricides conducting clinical trials, which may create the risk of equity dilution from capital raising needs.
NanoViricides shares traded hands at $2.17 on Tuesday afternoon.