NanoViricides Inc. (NNVC)

[JG36]

Each stage of drug testing is more expensive than the previous stage. Phase 1 trials are more expensive than any number of tests on rats. Phase 2 trials are more expensive than phase 1 trials. Phase 3 trials are more expensive than phase 2 trials. If NNVC has successful phase 2 or phase 1/2 trials for Flucide then it will have:

1. A very promising drug candidate.

2. Very little money left for the next stage.

At that point NNVC will either have to raise money by selling shares (hopefully at a much higher price than they are now) or by getting a licensing deal from big pharma. This is perfectly normal for a small, minimally capitalized drug development company and you should expect it. And don't forget to take this perfectly foreseeable dilution into account when you calculate how many zillions of dollars per share your investment will be worth in 4 or 5 years.