NanoViricides Inc (NYSEAMERICAN: NNVC) is flying early on in the trading session this morning, and for good reason. The company announced that it has entered into a licensing agreement, exciting investors and sending the stock screaming for the top. Today, we’ll talk about:
- The licensing agreement;
- what we’re seeing from NNVC stock as a result; and
- what we’ll be watching for ahead.
NNVC Stock Climbs On Licensing Agreement
As mentioned above, NanoViricides is having a great day in the market today after announcing a licensing agreement. The agreement was announced via press release early this morning.
In the release, NNVC said that it had reached an agreement to on the terms of a license for the drug development against VZV. VZV is a virus that cuases chickenpox in children and shingles in adults.
According to the release, the company and TheraCour have agreed that TheraCour will not receive any payment upon signing of the agreement. Also, the agreement states that TheraCour will receive 500,000 shares of the company’s Series A Preferred Stock as a milestone payment when an IND becomes effective.
If the company completes Phase 1 human trials, a payment of $1.5 million will be made in cash. Upon the completion of Phase 2 human trials, a payment of $2.5 million will be made in cash. Other payments will be consistent with the company’s existing license agreements with TheraCour, which include a 15% royalty on sales and 15% of any sub-licensing revenues.
This is overwhelmingly positive news. First and foremost, it means that the company will be pushing a new asset through the development process. Moreover, NNVC got a great deal on the agreement, which won’t require cash milestone payments until the completion of Phase 1 trials.
What We’re Seeing from The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to NanoViricides, the news proved to be overwhelmingly positive.
After all, the new agreement will open the doors to the development of a new product, one that is much needed in the field of medicine. So, it’s not surprising to see that excited investors are pushing the stock up in the market this morning.
As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:11), NNVC is trading at $0.71 per share after a gain of $0.29 per share or 70.26% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on NNVC. In particular, we’re interested in following the story surrounding the company’s work to expand the development of its pipeline. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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