Novogen Limited (NASDAQ: NVGN)
Novogen Limited is a Sydney based US-Australian drug discovery company. Today, they announced that the U.S. Food and Drug Administration (FDA) has given authority for its chemotherapy candidate drug, Anisina, to be granted Orphan Drug Designation for neuroblastoma.
The Orphan Drug Designation encourages the development of experimental drugs for clinical indications that do not have a high incidence and has been instigated in a number of territories including the U.S, Europe and Australia.
NVGN Earnings & Outlook
On July 1st, H.C. Wainwright analyst Swayampakula Ramakanth proclaimed “We believe that, with two novel oncology platforms, three clinic-ready products with large market potentials, approximately $35M in cash, and a cost-conscious management with a clear business strategy, Novogen is an attractive investment at its current market capitalization of approximately $69M.” H.C. Wainwright gave NVGN a Buy rating and an $8.50 price target.
Anisina is believed to have great potential as it can be used to break down solid tumors. It is the only drug with this ability on the market. Yahoo Finance
Novogen’s CEO Comments
“We are confident that we have found the drug that can successfully treat cancers arising in the brain as well as cancers that spread to the brain from elsewhere. The ability of TRXE-009 to kill brain cancer stem-like cells gives us particular confidence that we can finally kill off the root cause of any cancer within the brain.The proviso is that we can deliver it across the blood-brain barrier, and that is something that we will not know with any certainty until we bring TRXE-009 into the clinic. The collaboration with the Feinstein Institute is designed to maximize that likelihood. If we can do that, then we have a good chance of delivering breakthrough treatment options to adults and children with primary brain cancers and for patients with cancers such as melanoma that involve the brain and elsewhere.”-Graham Kelly, Novogen CEO & PhD The Street
Technical Analysis
NVGN today gapped up to $5.20 from yesterday’s close of $4.83 which is a 8% increase on its favorable news. The stock has a wide 52 week range from its $1.51 lows on December 15 to its run up to its high of $9.50 on April 20 due to positive news on preventing growth of chemo-resistant ovarian cancer by its subsidiary company Cantrixil . The run started on December 16, due to Novogen’s breakthrough discovery in the treatment of melanoma news it reached a high of $5.97 on that day which was a 349% increase from the previous close. NVGN also has a low float of 9 million shares which could make it a prime target run up on good news. The pre market high of $5.38 should be the first buy entry for traders interested in the gap and go strategy. I would use the $6 price as the first resistance level to watch on the stock if it does run up on the opening bell.
Company Profile
Novogen Limited is engaged in the pharmaceutical research and development business in Australia. The company has primarily two drug technology platforms, which include super-benzopyrans (SBPs) and anti-tropomyosins (ATMs). Its SBPs technology platform offers drug candidates, which include Cantrixil, an intra-peritoneal product intended for the treatment of abdominal cancers, such as ovarian and pancreatic cancer; Trilexium that is intended for the treatment of neural cancers, including glioblastoma and neuroblastoma; and Trx-7 for the treatment of prostate cancer. The companys ATMs technology platform targets the cytoskeleton of the cancer cell. Novogen Limited was founded in 1994 and is based in Hornsby, Australia. Yahoo Finance
