Nuvo Research Joint Pain
Nuvo Research, Inc. (TSX:NRI), is a Canadian company that makes a topical treatment for joint pain. The company's lead product, Pennsaid, used to treat knee osteoarthritis, has already been approved for use in Canada and several European countries.
Pennsaid uses a proven ingredient that up until recently has been taken orally. The problem with taking it orally is that it can cause gastrointestinal bleeding and heart problems. By using the topical formula Pennsaid, less of this ingredient has to be absorbed, since it is more targeted, and therefore, these side effects are no longer a problem.
Recently, Mallinkckrodt Inc, a subsidiary of Covidien, signed an agreement with Nuvo, giving it exclusive rights to market and sell Pennsaid in the United States. This is a huge endorsement of the product by a well established company and bodes well for the future of Nuvo.
The FDA is scheduled to reach a decision on the approval of Pennsaid in the United States in the first week of November. Nuvo stock could advance significantly if the drug is approved without limitations.
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