June 17, 2007
FeaturedProfiles.com Stock Pick: Novacea, Inc. (NOVC)
Price: $10.78 (long-term)
Novacea, Inc. is a biopharmaceutical company focused on in-licensing, developing and commercializing therapies for the treatment of cancer. The company's lead product candidate is Asentar, a promising prostate cancer drug currently in Phase III clinical trials for the treatment of glioblastoma multiforme.
NOVC recently ran to over $17.00 from the $7.00 level after the company announced a lucrative partnership deal with pharmaceutical giant, Schering-Plough. The deal is potentially worth $440 million to jointly develop Novacea's Asentar.
We expect further positive news out of NOVC. Considering the Schering-Plough deal, we believe NOVC is significantly undervalued down at a market cap of only around $50 million.
NOVC has a strong balance sheet with over $56 million in cash and short-term investments on the balance sheet as of March 31, 2007.
NOVC's chart has corrected from its high and is now beginning a new uptrend. __________________________________________________________________________________________