Novadel Should End Relationship with Hana

by H.S. Ayoub
BioHealth Investor.com



Hana Biosciences (HNAB) announced today that the company will cancel its FDA filing for Zensana, and work with Novadel (NVD) to resubmit a filing for a European formulation of the treatment in 2008.

Back in February, Hana announced that a delay of FDA approval was caused by an unidentified precipitate during manufacturing of the U.S. formulation of Zensana.

HNAB is down more than 35% during mid-day trading on Friday, while Novadel is down less than 10%.

I still believe in Novadel, and think it has a bright future. As later on in 2007, other FDA filings are expected to be submitted for the company's other products. But untill then, I believe that there are other opportunities available in other stocks.

I have sold my shares of Novadel for the time being, and will keep on eye on the stock. If the company hits its target dates with the expected FDA filings later in 2007, and it looks like the target date for the re-filing of Zensana is on scheduale, then I may buy back in. Andrew Vaino seems to share my views.

I have taken the capital and invested it in shares of Bruker BioSciences (BRKR), which I have featured at BHI recently.

Personally, I believe that Novadel can do better than Hana, and I have said that before. I think Novadel should end its agreement with Hana and find a new partner, if any associated charges are not excessive.



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