Shares of Novogen Limited (ASX: NRT) have been on a tear lately, having skyrocketed 22.4% on Wednesday and a remarkable 49.1% over the last four trading days.
The market has become increasingly excited about Novogen's prospects following the announcement of a second successful cancer drug study in the space of a fortnight, reported just under a week ago.
The latest report related to its experimental drug, Anisina, which it said killed melanoma cells irrespective of their mutational status. While there are other drugs on the market which already target melanoma, they only target a specific mutation so Anisina could be a significant find.
Prior to this result, Novogen also recently announced that its experimental anti-cancer drug, Cantrixil, killed human ovarian stem cells. Investors are clearly coming to terms with the biotech's potential.
Is it too late to buy?
Novogen has generated incredible returns for investors so far this year with its shares up 273% in the space of just over three months. While there are certainly some exciting developments going on at Novogen; investors need to remember the high level of risks involved with investing in the biotechnology sector.
While the stock could skyrocket higher in the event of further successful trial results, you only need to look at what happened to Sirtex Medical Limited (ASX: SRX) after it delivered a disappointing result which led to a 55% decline in the biotechnology giant's share price.
