Investment and Company Research
Opportunity Research
MICROCAP HOT TOPICS
 

July 31, 2013

Nuvilex’s Medical Marijuana Segment Could Mirror Israel’s Success

Most observers would be surprised to learn that Israel may be at the forefront of medical marijuana research across the globe. Considering the success of some of the programs in Israel in treating cancer patients with cannabis, Nuvilex Inc.’s (OTCQB – NVLX - $0.16 – Spec Buy) subsidiary, Medical Marijuana Sciences, Inc. may elect to emulate some of that country’s initiatives.

In Israel, the $40-million-per-year medical-marijuana industry has flourished. Today, medical marijuana is prescribed to 11,000 patients, up from 1,800 in 2009, according to the Israeli Health Ministry. It is used to treat an extensive list of illnesses including cancer, Parkinson’s, Tourette syndrome, and Post-Traumatic Stress Disorder (PTSD).  Importantly, while some cancer patients do smoke medical marijuana, in most cases, the drug is delivered via pill, liquid, food and even vapor.  These delivery method alternatives are a bit broader than what is typically found in the U.S.

Perhaps the reason for the forward-thinking of Israeli scientists is the long history of medical marijuana research in Israel, which according to a recent article in Tablet magazine, traces its roots to nearly 50 years ago. 

Much like in the U.S., despite the presence of tetrahydrocannabinol (THC) inherent in cannabis that is responsible for the “high,” Israeli researchers prefer to remove the THC and raise the concentration of the non-psychoactive cannabidiol, or CBD, which has documented anti-inflammatory and antioxidant properties.  In fact, in the 1960’s, Israel was a world leader in research on marijuana and its components conducted under the so-called grandfather of cannabis, professor Raphael Mechoulam of Hebrew University, who first isolated the THC component.

Going forward, as Americans continue to embrace the use of marijuana for its medicinal properties coupled with the elimination of THC from cannabis “extracts” and a concentration on the use of CBD as a therapeutic agent, Nuvilex’s choice of developing CBD-based treatments for serious cancers becomes validated.   Furthermore, a combination therapy for pancreatic cancer that combines a CBD-based treatment with its high profile live-cell encapsulation-based treatment for that disease may well be in Nuvilex’s future. 

Since the summertime is also a vacation period for the country’s legislators, the medical marijuana space has been a bit quiet of late. However, once legislatures return to session, it is likely that this industry segment will enjoy accelerated opportunities. 

You Might Also Like

Senior Analyst: Robert Goldman
Rob Goldman has over 20 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.

Analyst Certification
I, Robert Goldman, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report.

Disclaimer
This Opportunity Research Hot Topics article was prepared for informational purposes only. Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces research via two formats: Goldman Select Research and Goldman Opportunity Research. The Select product reflects the Firm’s internally generated stock ideas while the Opportunity product reflects sponsored research reports. It is important to note that while we may track performance separately, we utilize the same coverage criteria in determining coverage of all stocks in both research formats. While stocks in the Opportunity format may have a higher risk profile, they typically offer greater upside as well. Since April 2012, Goldman Small Cap Research has been compensated $500 per article by a third party.  This article is the opinion of Goldman Small Cap Research and was written based upon publicly available information.  The Company has not endorsed or compensated Goldman Small Cap Research for this article. All information contained in this report was provided by the Company or derived from GSCR due diligence. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations.

The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research did not make an independent investigation or inquiry as to the accuracy of any information provided by the Company, or other firms. Goldman Small Cap Research relied solely upon information provided by the Company through its filings, press releases, presentations, and through its own internal due diligence for accuracy and completeness. Such information and the opinions expressed are subject to change without notice. A Goldman Small Cap Research report, update, article, or note is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed.

This publication does not take into account the investment objectives, financial situation, or particular needs of any particular person. This report does not provide all information material to an investor’s decision about whether or not to make any investment. Any discussion of risks in this presentation is not a disclosure of all risks or a complete discussion of the risks mentioned. Neither Goldman Small Cap Research, nor its parent, is registered as a securities broker-dealer or an investment adviser with FINRA, the U.S. Securities and Exchange Commission or with any state securities regulatory authority.

ALL INFORMATION IN THIS REPORT IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESSED OR IMPLIED, OR REPRESENTATIONS OF ANY KIND. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE FOR THE QUALITY, ACCURACY, COMPLETENESS, RELIABILITY OR TIMELINESS OF THIS INFORMATION, OR FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT MAY ARISE OUT OF THE USE OF THIS INFORMATION BY YOU OR ANYONE ELSE (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF OPPORTUNITIES, TRADING LOSSES, AND DAMAGES THAT MAY RESULT FROM ANY INACCURACY OR INCOMPLETENESS OF THIS INFORMATION). TO THE FULLEST EXTENT PERMITTED BY LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY, OR OTHER THEORY WITH RESPECT TO THIS PRESENTATION OF INFORMATION.