NanoViricides Inc. (NNVC)

[JG36]

Theracour and AllExcel are private companies. (Dr. Diwan owns about 90% of Theracour.) The employees at the Shelton site all get their paychecks from Theracour. Any intellectual property they produce (patents or trade secrets) are owned by Theracour. Indeed, if you actually bothered to read the SEC filings you would know that all recent patents have been assigned to Theracour. Also, only Theracour is actually allowed to manufacture nanoviricides. NNVC pays Theracour for all drug development on a "cost + 30% of direct costs" basis. So Theracour has been profitable from day one. NNVC is basically a shell whose purpose is to raise cash from investors and funnel it to Theracour, which by now must have millions of dollars in its bank account. A practical effect is that all R&D costs NNVC 30% more than it would if NNVC actually owned the IP.