NanoViricides to Lease New Space for cGMP Production

WEST HAVEN, Conn.--(BUSINESS WIRE)--NanoViricides, Inc. (OTC BB: NNVC) (the "Company") announced today that it will be leasing new space for cGMP production of its nanoviricides® drug candidates against various viral diseases.

“This is the least dilutive way to obtain the cGMP manufacturing and lab space we need while avoiding capital expenditure from the Company’s current cash reserves”

The Company is planning to lease the space with an option for a future purchase from Inno-Haven LLC, a special purpose company formed for the acquisition of a facility and construction of appropriate laboratory and manufacturing facilities.

The Company will need to produce much larger quantities of the nanoviricides drug candidates for its upcoming toxicological studies than it can handle in the current facilities. Assuming the studies are successful, additional materials will have to be manufactured for human clinical trials if and when approved by the US Food and Drug Administration (FDA). The production of materials for human trials needs to be performed under FDA guidelines called “cGMP” (short for “current Good Manufacturing Practices”). The Company plans to manufacture the bulk cGMP drug materials for its future human clinical trials at the new facility.

In order to support the Company’s objectives, Inno-Haven LLC has agreed to purchase certain facilities. Inno-Haven is owned by Anil R. Diwan, PhD, President and Chairman of NanoViricides, Inc. Dr. Diwan plans to finance the purchase from his personal savings, personal borrowings, and a sale of stock of NanoViricides, Inc. that he has obtained as a Founder. To this end, NanoViricides, Inc. has agreed that Dr. Diwan will sell up to 2 million shares of his stock over the next year. In exchange, Inno-Haven LLC, and Dr. Diwan, have agreed to purchase certain facilities and lease a portion as needed to NanoViricides, Inc. Dr. Diwan has also agreed to provide personal guarantees, as needed, for the contemplated transactions. The Company has studied several alternative proposals including those from certain groups of current investors and has determined that this approach provided the best value for the Company and its shareholders. TheraCour Pharma, Inc., a drug development partner of NanoViricides that is controlled by Dr. Diwan, also plans to lease space in the same facility.

“This is the least dilutive way to obtain the cGMP manufacturing and lab space we need while avoiding capital expenditure from the Company’s current cash reserves,” said Dr. Eugene Seymour, MD, MPH, CEO of the Company, adding, “We are now on our way to clearing a major hurdle in our path towards FDA submissions and human clinical development of our drug candidates.”

The Company believes that the urgency for obtaining these manufacturing capabilities has now increased substantially. This is because of the recent successes of the Company’s FluCide™ drug candidates in pre-clinical animal studies. The Company has conducted pre-clinical efficacy studies using stringent, high-lethality-oriented, animal study protocols and has examined several parameters such as protection from lung inflammation and lung necrosis, extent and durability of viral load reduction, and extension of survival. The Company has publicized these findings in its recent press releases. On the basis of these findings, the Company believes that its FluCide drug candidates may be orders of magnitude superior to existing drugs in the treatment of influenza.

Inno-Haven, LLC has presented the case to the planning and zoning commission of the city and is in the process of obtaining necessary approvals.

About NanoViricides:

NanoViricides, Inc. (www.nanoviricides.com) is a development stage company that is creating special purpose nanomaterials for viral therapy. The Company's novel nanoviricide® class of drug candidates are designed to specifically attack enveloped virus particles and to dismantle them. The Company is developing drugs against a number of viral diseases including H1N1 swine flu, H5N1 bird flu, seasonal Influenza, HIV, oral and genital Herpes, viral diseases of the eye including EKC and herpes keratitis, Hepatitis C, Rabies, Dengue fever, and Ebola virus, among others.

This press release contains forward-looking statements that reflect the Company's current expectation regarding future events. Actual events could differ materially and substantially from those projected herein and depend on a number of factors. Certain statements in this release, and other written or oral statements made by NanoViricides, Inc. are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company's control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Important factors that could cause actual results to differ materially from the company's expectations include, but are not limited to, those factors that are disclosed under the heading "Risk Factors" and elsewhere in documents filed by the company from time to time with the United States Securities and Exchange Commission and other regulatory authorities. Although it is not possible to predict or identify all such factors, they may include the following: demonstration and proof of principle in pre-clinical trials that a nanoviricide is safe and effective; successful development of our product candidates; our ability to seek and obtain regulatory approvals, including with respect to the indications we are seeking; the successful commercialization of our product candidates; and market acceptance of our products.