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G'day,

Does anyone have any thoughts on Novogen (ASX:NRT) as a Rule Breaker OZ style???

Novogen call themselves a pharmaceutical and healthcare company focused on the development and marketing of products using phenolic hormones (Isoflavones). They currently have two products Promensil and Trinovin on the market with a few more in R&D. They are using the cashflow from the Sales of these products to finance expansion and the R&D for other products (cancer treating mainly). They are also involved in a lawsuit with a previous subcontractor!

Here's my thoughts versus Rule Breaker categories :-

1. Top Dog/1st Mover - Novogen appear to be the leader in the specific field of Isoflavone development. However, their Promensil product (for menopause) and Trinovin (prostrate) do have competition from other types of pharmaceuticals. Can anyone tell me if either of the above products are any good? Any Doctors on the Fool boards???

2. Sustainable Advantage - Novogen continue R&D on the cancer treating drugs, have 12 patents and propriety ownership of the red clover they use to extract the Isoflavones. Novogen also manufacture their own product.

3. High Relative Strength - Don't know! They have doubled over the last year or two!!!

4. Good Management/ Smart Backing - Assume they do, but there is that lawsuit!!!! They have good and improving Cash-Debt ratio's although their Fool Flow ratio is poor. Sales have grown heaps in the last few years. They are also appear agressive by the expansion into US and Netherlands. But there is that lawsuit!!!!!

5. Consumer Appeal - The products are directed at the aged and the community is aging. The product is a natural alternative to "synthetic" drugs, which may have some appeal. Talking to my mother, the biggest advantage would be no side effects. My conclusion would be if the products work well then they could be sold to the masses.

6. Overvalued - ??? I have found an email (not on Fool boards) from someone who wants to short them. His argument was they are just a food company (which is partly true since they sell it in supermarkets and health food stores).

Can someone have a look at the current products and shed any light on Isoflavone technology?? I've searched the internet and not had much luck on information (by the end user or medical profession) about the quality of the product .

Thanks,....MacFool.


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