- Novan, Inc. is a late-clinical-stage biotechnology company specializing in therapeutics based on nitric oxide's naturally occurring anti-viral, anti-bacterial, anti-fungal, and immunomodulatory mechanisms of action.
- Novan has a pipeline of 6 NO-based therapeutics with 5 in the clinical stage; however, after limited funding, Novan announced a 2021 pause on other trials until SB206's Phase 3 Q2-results.
- Novan is in a risky financial position with funding only until Q1 2022 alongside minimal cash at $36M, a 2020 cash burn of -$32M, and $4M in 2021 expected revenues.
- Novan's next catalyst is SB206's Phase 3 (B-SIMPLE4) readout in Q2 2021 which will be critical to short-term strong returns or heavy losses.
- In summary, the author projects Novan, Inc. as a risky "hold" and, if successful with SB206, a 1-year price target of $3 (+127% upside).
For further details see:
Novan: Q2 2021's SB206 Readout Is Life Or Death For This NO-Based Biotech