Nuvo shares jump after FDA approval

Richard Blackwell

From Friday's Globe and Mail

Nuvo Research Inc., a drug developer based in Mississauga, saw its shares jump 22 per cent yesterday after it's flagship osteoarthritis treatment received approval from the U.S. Food & Drug Administration. The ruling means the company can sell Pennsaid, a pain-killing cream that is absorbed through the skin on the knee, in "the most lucrative market in the world, the United States," chairman Dan Chicoine said yesterday. Nuvo has been trying to get FDA approval for more than seven years. It will now receive a $15-million "milestone" payment from its marketing partner, Covidien Ltd. of Mansfield, Mass., plus royalties and fees for manufacturing the product. It also gains credibility for the company's technology, which will be used to administer other drugs through the skin, Mr. Chicoine said. NRI (TSX) rose 7.5 cents to 42 cents.

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