LONDON, June 22, 2015 /PRNewswire/ --
- Edison Investment Research, a leading international investment research firm, announces the initiation of full coverage of Novogen
Highlights of the analysis on Novogen by Edison's pharma & biotech analysts Dennis Hulme and Christian Glennie include:
Novogen is an ASX- and NASDAQ-listed biotechnology company. Its two main drug technology platforms are super-benzopyrans (SBP) and anti-tropomyosins (ATM). SBP compounds show potent activity against cancer stem cells and also have potential application in degenerative diseases. ATMS show synergy with anti-mitotics in cancer.
We value Novogen at A$159m or A$0.38 per share (equal to A$0.32/sh after diluting for options and convertible notes), including the A$17.7m rights issue proceeds. Our valuation is based on a risk-adjusted NPV analysis, which includes ~A$45m net cash and our forecasts for Cantrixil, Trilexium and Anisina, with probability of success of 7.5% to reflect the current preclinical development stage. If we were to assume that each of the three drugs enters Phase I trials with a 15% chance of success, our NPV would increase to A$271m (A$0.64/share, undiluted). Each NASDAQ-listed ADR represents 25 ordinary shares. Our undiluted valuation of A$0.38/share equals US$7.30 per ADR at current exchange rates.
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For more information please contact:
Dennis Hulme, Edison Investment Research, +61(0)2-9258-1161
Christian Glennie, Edison Investment Research, +44(0)20-3077-5727
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SOURCE Edison Investment Research