Edison Issues ADR Update on Novogen

11 May, 2016, 10:22 ET from Edison Investment Research

LONDON, May 11, 2016 /PRNewswire/ --

Novogen has unwound its CanTx JV with Yale and resumed 100% ownership of its lead superbenzopyran Cantrixil, as it prepares to enter the clinic in ovarian cancer patients in Q416. Separately, its anti-tropomyosin (ATM) drug Anisina, which shows strong synergy with standard-of-care anti-mitotic drugs, is scheduled to enter the clinic in H216 or H117 (pending successful completion of toxicology studies). With $29m cash, we believe that Novogen is funded through FY18. Our valuation is virtually unchanged at $86m (vs $87m), with the benefit of resuming 100% ownership of Cantrixil offset by higher forecast G&A expenses.

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Our risked DCF valuation is falls slightly to $86m or $4.97/ADR (undiluted, previously $87m and $5.13/ADR) and $4.35/ADR after diluting for options and convertible notes. The benefit of resuming 100% ownership of Cantrixil is offset by increased G&A expenses in response to the higher run rate in H116 (FY16 increased by $1.3m to $4.2m, with the increase flowing on to subsequent years).  

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SOURCE Edison Investment Research