Mr. Dan Chicoine reports

NUVO RESEARCH ANNOUNCES COLLABORATION TO DEVELOP TOPICAL DERMATOLOGY PRODUCTS

Nuvo Research Inc. is collaborating with Ferndale Laboratories Inc. and a leading contract research organization (CRO) with significant dermatology experience to develop two topical dermatology products based on Nuvo's patented Multiplexed Molecular Penetration Enhancer (MMPE) technology. "This exciting opportunity demonstrates how Nuvo can leverage one of our four proprietary technologies that enhances the delivery of active drugs into or through the skin," said Dan Chicoine, Nuvo's chairman and co-chief executive officer. "This agreement validates our patented drug delivery platforms and highlights our ability to expand our development product pipeline through strategic collaborations with partners who will fund the costs of clinical development." Under the terms of the collaboration agreement, Nuvo will utilize its proprietary MMPE technology to formulate two patented topical dermatology product candidates. Once the formulations are complete, Ferndale in collaboration with the CRO will oversee and finance the formulations' advancement through phase 2 clinical studies. It is anticipated that the product candidates will then be made available for out-licensing. Licensing revenues, including upfront payments, milestone payments and royalties will be shared by the parties based on a formula that includes compensation to Nuvo for contributing the patented formulations.

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