UPDATE: LifeTech Capital Downgrades NovaBay to Neutal, Drops PT to $1.25

In a published note, LifeTech Capital downgrades NovaBay Pharmaceuticals, Inc.

to Neutral from Strong and drops its price target from $2.50 for $1.25 on trading liquidity risk. According to LifeTech, “Despite several potential catalysts in 2012 such as UCBE and Impetigo Phase II data (see below), we believe the time and/or cost of the required registration trials will probably mute investor enthusiasm for NovaBay shares until both investor confidence and interest return. We further note that NovaBay's planned H1 2012 re-launch of FDA 510(k)-cleared NeutroPhase® for wound care carries first-year partner sales execution risk as well as adoption risk in the crowded wound care space. “ NBY closed at 1.06 per share on Friday.