The Company is actively conducting research on formulations utilizing its molecular skin penetration enhancer systems to build its topical and transdermal drug candidate pipeline. The Company is focusing its research in the areas of pain and selected indications in the field of dermatology. A number of formulations are under research or in early stage pre-clinical development.

Pain

In addition to Pennsaid and Pennsaid Plus, Nuvo is developing topical medications for a variety of pain conditions, including acute and chronic pain of inflammatory, nociceptive and neuropathic origin. The prescription pain market in the U.S. is $20 billion and growing.

All of Nuvo's pain medications will be designed to treat the pain locally, while limiting systemic exposure to the active drug. Topical products reduce the potential for negative side effects, adverse events and potential drug-drug interactions. The drug product candidates under development are at various stages of formulation and pre-clinical development. Development of these topical drug candidates is being aided by fqubed's screening technology.

Dermatology

The Company is also pursuing development of drugs to treat dermatological indications. Nuvo's research in this area has been directed towards pre-clinical activities on a topical antifungal drug candidate intended for use in treating onychomycosis (a nail fungal infection that resides in both the nail and nail bed).  Onychomycosis is responsible for approximately half of all nail disease and affects an estimated 15% to 20% of people over age 40 in North America. The incidence of onychomycosis continues to increase as aging populations are more vulnerable to the disease.