NTII Neurobiological Technologies (MM)

Dutton Associates updates its coverage of Neurobiological Technologies (Nasdaq:NTII) maintaining a Strong Speculative Buy rating and a 12 month target price of $6. The 12-page report by Dutton senior analyst Denise T. Resnik, M.S. is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals. Neurobiological Technologies continues to attract an increasing level of interest within the healthcare and financial fields. The Company�s major research effort is being concentrated on Phase III clinical trials of Viprinex� for the treatment of acute ischemic stroke, which is believed to have a world-wide market approaching $2 billion. In an effort to maximize the potential of the Viprinex program, the Company appointed Warren W. Wasiewski, M.D., F.A.A.P., as Vice President, Clinical Programs, to lead the clinical development program. Dr. Wasiewski, a board certified pediatric neurologist, was pivotal in the development and execution of AstraZeneca�s Phase III clinical studies for acute ischemic stroke. The Viprinex program has been partially funded by two sources of income. The Company sold the rights and assets of Xerecept� for the treatment of peritumoral brain edema while it continues to sponsor and conduct pivotal Phase III clinical trials. In addition, the Company benefits from an increasing stream of royalties related to sales of Memantine� for the treatment of Alzheimer�s disease. Recently, the Company sold to institutional investors shelf-registered common stock and warrants with net proceeds estimated at approximately $6.6 million. If Viprinex�s clinical trials are successful, we believe an eventual market capitalization for Neurobiological Technologies that is a multiple of the current level is reasonable. About Dutton Associates Dutton Associates is one of the largest independent investment research firms in the U.S. Its 31 senior analysts are primarily CFAs, and have expertise in many industries. Dutton & Associates provides continuing analyst coverage of over 145 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors. The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $87,500 from the Company for 14 Research Reports with coverage commencing on 5/13/02. The Firm does not accept any equity compensation. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.