Novan Inc (NASDAQ:NOVN)
Novan Inc (NASDAQ:NOVN) closed last Thursday at $4.26 and have hit as high as $6.27 in today’s trading. No financial or earnings news has been released by the company that could realistically propel a two-day increase of over 45%. Shares of Novan Inc (NASDAQ:NOVN) have a listed 30-day daily volume average of just under 93,000. However, on Friday over 750,000 shares traded hands and over 2.2 million have been traded by 2:10 PM EST today. Volume and price increase may be the result of trading chat rooms developing a buying momentum behind the shares which, if successful, becomes a self-fulfilling prophesy until traders start exiting the position to traders not fortunate to enter the trade earlier. The $NOVN twitter feed lends support to such a view.
Novan Inc (NASDAQ:NOVN), a clinical-stage dermatological drug development company, is in the business of developing and commercializing nitric oxide-based therapies. Its lead product candidate is SB204. The company is scheduled to have a New Drug Application preliminary meeting with the U.S. Food and Drug Administration (FDA) in Q3 2017. SB204 is a topical gel that targets multiple mechanisms of action for the treatment of acne vulgaris. The Phase 3 results were decidedly mixed and that realization sent shares crashing down over 75% at one point. Acne vulgaris is the most common skin condition in Americ. It is estimated to affect, annually, approximately 40 million to 50 million Americans. Novan Inc (NASDAQ:NOVN) also has a drug candidate, SB206, ending its Phase 2 clinical trial in Q2 of 2017. SB206 was developed to treat the Human papillomavirus (HPV). HPV affects nearly 80 million Americans, and an estimated 14 million new cases of the virus are reported each year, according to the Centers for Disease Control and Prevention.
The two-day run on NOVN comes less than a month after the company changed leadership and announced a 20% workforce reduction to cope with a dwindling cash supply – just $30 million reported in early July. For 2016, NOVN shareholders had a per share loss of (-$9.97) and, to date, there is little evidence that justifies the recent jump in share price.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.