Novogen Limited (ADR) (NASDAQ:NVGN) announced that pre-clinical trials of one of its drug candidates offered more insight than was originally expected. The company said that studies of TRXE-009, a drug compound that was developed to combat the conditions of brain cancers, proved that it could do more than that. The compound was also found to be potent in combating of melanoma, a condition that is associated with skin cancer.
According to Novogen Limited (ADR) (NASDAQ:NVGN), there are two main reasons that make the latest discovery concerning TRXE-009 important. First, the company mentioned that the breakthrough discovery suggests that the compound is a new potential treatment for the melanoma. The second reason is that the discovery somehow confirms the hypothesis that brain cancer condition had links with melanoma.
The company went into details how researchers have long-suspended the existence of a link between melanoma and brain cancers. As such, the surprising activity of TRXE-009 against melanoma offers the first evidence of a link, which is important the company and medical researcher working on treatments for melanoma and other cancers.
Expanded treatment mandate
As for Novogen Limited (ADR) (NASDAQ:NVGN), the confirmation of a link between brain cancer and melanoma could only mean expanded treatment mandate for TRXE-009, which is also good for revenue. The compound has already been found to be potent in combating brain cancer in adults and children. As such, pursuing its development for melanoma is expected to lead to more revenue from its sales.
However, Novogen Limited (ADR) (NASDAQ:NVGN) said that its main focus currently was on another drug candidate known as Cantrixil. The company has currently committed its efforts and financial resources to the development Cantrixil. It hopes to push forward with the development of TRXE-009, which will be offered as Trilexium, when resources are available for it.
Novogen Limited (ADR) (NASDAQ:NVGN)’s most recent financial report didn’t have much good news. The company reported revenue of $0.06 million, which almost double the amount that was generated in the prior quarter. It did not update on its available cash but said its total liabilities stood at $3.15 million at the end of the September quarter.
The price action of Novogen Limited (ADR) (NASDAQ:NVGN) is most strongly characterized by the buying support a specific level keeps providing over a long period of time. The best example would be the support around the levels of $3.50-60, where any long would make some money in the period of 2013-14. A breakdown below $3.50 resulted into a vertical breakdown to the long term horizontal support area around $1.50. For now, the big supply zone at $7 is to be watched as it can cap the current rally.