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NanoViricides Inc. Announces that its President Dr. Diwan has Completed his Stock Sales Program

^{Published on 2011-10-17 22:41:01 - Market Wire}
 

WEST HAVEN, Conn.--([ BUSINESS WIRE ])--NanoViricides, Inc. (OTC BB: [ NNVC ]) (the "Company") announced that its President, Dr. Anil Diwan, has completed the programmed sale of the NanoViricides stock that he had obtained as a founder. The Company had agreed to this stock sale in order to help partially offset the costs for the acquisition of a facility and of architectural and engineering design of its renovation.

"Conserving capital is very important for NanoViricides"

The Company has reported that an 18,000 square foot facility in Shelton, CT has been acquired by Inno-Haven, LLC, a special purpose entity formed for the project. When completely renovated, the new facility is anticipated to house administrative, R&D and cGMP or acurrent Good Manufacturing Practicea manufacturing functions for the Company.

NanoViricides, Inc. did not incur any capital costs, as Inno-Haven, LLC financed the acquisition of the building. The financing was derived from Dr. Diwana™s personal funds and from private mortgage loans that were personally guaranteed by him. Dr. Diwan is a controlling Member of Inno-Haven, LLC.

In order to ensure sufficient funding for the next phase of the project, with the Companya™s approval, Dr. Diwan engaged into a programmed sale under Rule 10b5-1 of a portion of his NanoViricides foundera™s stock. Dr. Diwan has determined that sufficient funding is now available for the next steps which include architectural and engineering design for the necessary modifications. This available funding includes the proceeds from his sale of stock and additional commitments from other investors that he has been able to obtain. The remaining funding for the engineering and construction phase is anticipated to be achieved using commercial programs available for such purpose, which may include SBA-guaranteed bank loan programs and other private institutions. As such, Dr. Diwan has determined that the sale of his NanoViricides shares is no longer necessary.

aConserving capital is very important for NanoViricides,a said Dr. Eugene Seymour, MD,MPH, CEO of the Company, adding, aDr. Diwana™s commitment and personal risk-taking has allowed us to minimize capital expenditures even as we endeavor to enable cGMP manufacturing capability for our drug candidates. We are further pleased that he has agreed to end the programmed sale, as soon as there was sufficient funding available.a

The Company will be required to have cGMP manufactured drug products available for clinical trials when it files an Investigational New Drug application to the FDA. cGMP is a set of guidelines that address the manufacturing processes, equipment, and facility, among other aspects, that must be adhered to when producing drugs for human use.

The need for a cGMP drug manufacturing capability has become critical for the Company in order to advance its drug candidates into the FDA regulatory process. The Company has been working diligently over the last five years to address this issue. After evaluating various available options including leasing external existing cGMP facility, contract manufacturing, etc., the Company determined that building a pilot scale cGMP facility was the most cost-effective option available. The Company believes that Inno-Haven can be expected to obtain the financing necessary for this project with very limited capital requirements on the Company.

The Company has recently announced that it has chosen a clinical candidate, NV-INF-1, in its anti-influenza drug program (FluCidea") to develop for FDA submission. NV-INF-1 is expected to be a highly effective anti-influenza drug, based on the extremely high efficacy observed in animal studies.

The Company has also recently announced significant successes in its anti-HIV drug program, viz. HIVCidea". In a recent standard humanized mouse model study, the best HIVCide candidate showed effectiveness against HIV-1 that was similar to a three drug HAART (highly active anti-retroviral therapy) cocktail even though HIVCide was administered at a much lower total dosage. What is more significant, this nanoviricide drug candidate continued to work to suppress HIV viral load for at least 28 days beyond last drug administration. These data along with previous similar successes in anti-HIV drug development indicate that HIVCide may provide a afunctional curea of HIV/AIDS either alone or in combination with other drugs.

[ About NanoViricides ]:

[ NanoViricides, Inc. ] ([ www.nanoviricides.com ]) is a development stage company that is creating special purpose nanomaterials for viral therapy. The Company's novel nanoviricide® class of drug candidates are designed to specifically attack enveloped virus particles and to dismantle them. The Company is developing drugs against a number of viral diseases including H1N1 swine flu, H5N1 bird flu, seasonal Influenza, HIV, oral and genital Herpes, viral diseases of the eye including EKC and herpes keratitis, Hepatitis C, Rabies, Dengue fever, and Ebola virus, among others.

This press release contains forward-looking statements that reflect the Company's current expectation regarding future events. Actual events could differ materially and substantially from those projected herein and depend on a number of factors. Certain statements in this release, and other written or oral statements made by NanoViricides, Inc. are aforward-looking statementsa within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company's control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Important factors that could cause actual results to differ materially from the company's expectations include, but are not limited to, those factors that are disclosed under the heading "Risk Factors" and elsewhere in documents filed by the company from time to time with the United States Securities and Exchange Commission and other regulatory authorities. Although it is not possible to predict or identify all such factors, they may include the following: demonstration and proof of principle in pre-clinical trials that a nanoviricide is safe and effective; successful development of our product candidates; our ability to seek and obtain regulatory approvals, including with respect to the indications we are seeking; the successful commercialization of our product candidates; and market acceptance of our products.