Did you miss out on the big Wednesday move shares of Novogen saw. Subscribers of the Stocks Under $20 portfolio have had my opinions on shares for a short while and seen strong gains after a buy in price of $2.82. Here is that original post and further proof that you should be following the Stocks Under $20 portfolio with interest. 

The following was previously released to subscribers of Stocks Under $20:

Shares of Novogen Limited (Official Website) have been rising in recent weeks and are set to have an exciting week that may see immediate gains for investors. Novogen has new technology and strategies to target cancers like ovarian, colorectal, malignant ascites, prostate, neural cancers, and melanoma. The company’s two main drug technologies are super benzopyrans and anti-tropomyasins.

With the market closed Monday, Tuesday will be our targeted buy in day for the portfolio. The key reason is Wednesday will be the company’s Investor Day Presentation. This presentation will cover the following key pieces:

2015/2016 clinical research strategy

U.S. scientists to present details of Cantrixil and TRXE-009 studies

Along with its own pipeline, Novogen also has a joint venture with Yale University. The company CanTX is based in New Haven Connecticut and what I believe to be an undervalued part of Novogen. Cantrixil is of particular note as it is the key piece of the joint venture with Yale University. From a December press release, investors should note that this is a potential revolutionary chemotherapeutic treatment. Cantrixil differentiates as it is an injection into the infected body cavity, in comparison to the current blood stream injection method.

The release states, “Delivering the drug directly into the cavity where the cancer is spreading ensures cancer cells are exposed to levels of drug some hundreds of times greater than via the blood.” This method used in animal models for ovarian cancer blocked cancer development and looks ready to enter human trials.

CanTX’s site says the joint venture was “forged to produce novel therapeutics that kill the cancer stem cell that we hope will bring transformational change to patient survival”.

The presentations will be of particular note as the pipeline currently looks like it is staring to enter the invest in phase as 2015 and 2016 are the key years:

Cantrixil: Quarter 3 2015

TRXE-0025: Quarter 1 2016

Trilexium: Quarter 1 2016

Anising: Quarter 1 2016

Along with Wednesday’s Investor Briefing, the company will be presenting at the following:

Feb 17: Wall Street Wonders

Feb 23: Sachs Cancer Biotech Investor Conference

May 19-21: Australia Biotech in Hong Kong

May 27-28: Marcum Microcap

May 29: Brain Tumor Biotech Summit

June 15-18: Bio International Convention

Novogen has seen a couple spikes recently with new items. This includes:

2/11 key super-benzopyran patent for the leading drug candidates TRXE-002, TRXE-009, and TRXED-0025

1/15 shares jumped 50% in response to this item in a press release, “identified a family of compounds with an ability to promote the growth and activity of normal brain stem cells”. This targets brain regeneration and creates a new method of targeting hard cancer areas like the brain.

12/16 breakthrough discovery melanoma treatment TRXE-009 highly active in pre-clinical studies. This was a big release that caused shares to jump over 100%. The key piece was the fact that TRXE-009 is an important new potential secondary treatment to brain cancers due to melanoma. There is no current effective therapies for this treatment. Also this shows a hypothesized link between brain cancer and melanoma.

Novogen is a pre-clinical company and currently has no human trials going. However, this is about to change and Wall Street is likely to take not and start reacting. Just two months ago, shares were way up over $5. The company’s key cancer focus in ovarian cancer, which has been targeted by many companies. Endocyte has shares that trade at $5.26. They traded all the way up to $33.70 around one year ago. Currently the company has phase ii and phase iii trials for ovarian cancer, which give the company a market capitalization of $219 million. Insys Therapeutics received orphan drug designation for an ovarian cancer treatment. That company, which also has other drugs in trial and meaningful revenue, has a market capitalization of $1.8 billion.

While I don’t see shares of Novogen approaching these levels that soon, I do think now is the ground floor to get in on this possible revolutionary technology. I am most excited about Cantrixil and the possible chemotherapy treatment. However, the rest of the business is also exciting as well. I see shares doubling back up the $5 to $6 range by the time some of these trials start. Looking at $5 by the end of March 2016. This would be all four of the events above hitting and also all of these investor presentations attracting new investors.

As mentioned above, shares of Novogen have already started taking off in the short term. Shares will be hot this week and could see a double within days depending on the data presented. We will be looking at getting in under $3 but will see how Tuesday plays out. Shares ended at $2.79 on Friday. Over the last 52 weeks, shares have traded between $1.51 and $5.97.

Shares of Novogen were bought for the Stocks Under $20 portfolio at a price of $2.82. Thus, on paper, we have seen large gains, but have not sold any shares. I believe the stock will continue to see wild swings based on press releases and newsworthy items. As laid out above, there is some catalysts coming in 2015, and at some point this company may take off and not look back. Information for that article came from a February newsletter.