Breaking down the balance sheet of Nuvo Research (TSX:NRI)

Mississauga’s Nuvo Research, which has developed an osteoarthritis pain-killing cream that is absorbed through the skin, saw its revenues leap on a milestone payment. Upon receiving FDA approval, Nuvo received $15-million payment from its marketing partner, Covidien. Ultimately the Company received $27.3-million in a single quarter when licensing payments were added to the mix. Nuvo management has taken the approval to market of Pennsaid, the commercial name of the treatment, as a opportunity to diversify; last December they shuffled management around to put more resources behind the development of its autoimmune drug platform.

1. Price to Sales: 1.96

As of Friday, July 23 Nuvo had 417.30 million shares outstanding. The price, as of the same date, was $.185 This gave The Company a market capitalization of $77.2 million. In the trailing four quarters Nuvo posted sales of $39.23 million.

2. Cash to Market Cap: 47%

As of March 31st, 2010 Nuvo had a Cash and Short Term Investments position of $36.25 million. The Company’s Market Capitalization, as of Friday, July 23rd was $77.2 million.

3. Debt to Market Cap: 0.0004%

As of March 31st, 2010 Nuvo had a Long Term Debt position of $6,000. The Company’s Market Capitalization, as of Friday, July 23rd was $77.2 million.

4. Three Year Growth: 128.9%

Revenue was $4.07 million in FY 2006. This grew to $38.35 million in FY 2009.

5. Enterprise Value to Sales: 1.05 x Sales

Nuvo’s Enterprise Value is $41 million, based on a market capitalization of $77.2 million, plus Long Term Debt of $6,000, minus Cash and Short Term Investments of $36.25 million.

All financial information about Nuvo is gleaned from

their filings with the System for Electronic Document Analysis and

Retrieval (SEDAR)

All calculations are based on The Company’s closing share price as of

close July 23rd, 2010: $.185

Sales from trailing four quarters: $77.2 million

Cash and Short Term Investments as of March 31st, 2010: $36.25 million

Shares outstanding: 417,308,012

About The Author / Nick Waddell

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.

Comment

beancounter says:

August 8, 2010 at 1:53 pm

I would like to see a lot more research on Nuvo.
mwowchuk says:

August 8, 2010 at 4:37 pm

Are there any analysts following Nuvo Research? I’d also like to see more coverage on this stock. Perhaps monthly prescription numbers for the US.