“We eagerly anticipate, any day now, data from the Phase 2 dose-ranging study of SB206—topical nitric oxide (NO) gel—for molluscum contagiosum. We see molluscum as a large, underserved pediatric dermatology opportunity, with no FDA approved Rx treatments, and it is currently the key contributor to our Novan valuation. If Phase 2 is positive, with SB206 demonstrating meaningful molluscum lesion clearance rates at 12-weeks and good tolerability, it should be a transformational catalyst for Novan. Note that the only molluscum comparable, Verrica Pharmaceuticals (VRCA; not rated), which has positive open-label molluscum Phase 2 data and Phase 3 expected in 1Q19, has a $350M market cap—dramatically higher than Novan’s current $68M market cap.”,” the firm’s analyst commented.
NOVN has been the subject of several other reports. Piper Jaffray Companies reiterated a buy rating and set a $6.00 price objective on shares of Novan in a research note on Friday, July 20th. Zacks Investment Research upgraded shares of Novan from a hold rating to a buy rating and set a $3.00 price objective for the company in a research note on Saturday, August 25th. Two analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. Novan currently has a consensus rating of Buy and a consensus price target of $7.75.
NOVN traded down $0.05 during trading on Tuesday, hitting $2.62. The stock had a trading volume of 15,529 shares, compared to its average volume of 25,226. The company has a market cap of $69.31 million, a price-to-earnings ratio of -1.13 and a beta of 1.17. Novan has a twelve month low of $2.27 and a twelve month high of $6.23.
Novan (NASDAQ:NOVN) last announced its earnings results on Wednesday, August 8th. The company reported ($0.29) earnings per share for the quarter, meeting the Thomson Reuters’ consensus estimate of ($0.29). The company had revenue of $0.65 million during the quarter, compared to the consensus estimate of $0.60 million. Novan had a negative net margin of 1,090.89% and a negative return on equity of 999.61%. As a group, research analysts anticipate that Novan will post -1.04 earnings per share for the current fiscal year.
In other Novan news, CEO G. Kelly Martin bought 30,000 shares of Novan stock in a transaction that occurred on Tuesday, August 21st. The stock was purchased at an average price of $2.71 per share, with a total value of $81,300.00. Following the completion of the acquisition, the chief executive officer now directly owns 30,000 shares in the company, valued at approximately $81,300. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Robert Alexander Ingram bought 50,000 shares of Novan stock in a transaction that occurred on Friday, September 28th. The shares were acquired at an average cost of $2.84 per share, with a total value of $142,000.00. Following the acquisition, the director now owns 119,777 shares of the company’s stock, valued at $340,166.68. The disclosure for this purchase can be found here. Insiders have bought 110,000 shares of company stock valued at $303,800 over the last quarter. Insiders own 8.83% of the company’s stock.
An institutional investor recently raised its position in Novan stock. Renaissance Technologies LLC increased its holdings in shares of Novan Inc (NASDAQ:NOVN) by 83.2% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 59,000 shares of the company’s stock after purchasing an additional 26,800 shares during the period. Renaissance Technologies LLC owned approximately 0.23% of Novan worth $173,000 as of its most recent filing with the Securities and Exchange Commission (SEC). Institutional investors own 11.67% of the company’s stock.
Novan Company Profile
Novan, Inc, a clinical-stage biotechnology company, focuses on the development and commercialization of nitric oxide-based therapies to treat dermatological and oncovirus-mediated diseases. Its clinical stage product candidates include SB204, a topical monotherapy that is in Phase III pivotal clinical trials for the treatment of acne vulgaris; and SB206, a topical antiviral gel, which is in Phase III pivotal trials for the treatment of patients with external genital warts, and Phase II clinical trial for the treatment of molluscum contagiosum.
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