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.
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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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About Edison: Edison, the investment intelligence firm, is the future of investor interaction with corporates. Our team of over 100 analysts and investment professionals works with leading companies, fund managers and investment banks worldwide to support their capital markets activities. We provide services to more than 400 retained corporate and investor clients from our offices in London, New York, Frankfurt, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority (http://www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584).
Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.
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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