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MICROCAP HOT TOPICS

August 16, 2013

Multi-Treatment Platform Offers Multi-Billion Dollar Opportunity for Nuvilex

On the heels of closing the acquisition of licenses representing the exclusive rights to the live-cell encapsulation platform for pancreatic and other cancers, Nuvilex, Inc. (OTCQB – NVLX) announced via a shareholder update that it is in the process of securing similar rights for diabetes treatment as well. Funding has been committed and the closing is expected no later than the end of October 2013.

Given the alarming statistics and the fact that there is a real unmet need, this is tremendous news for the Company and its shareholders.

Diabetes is a major health issue in the United States and other industrialized nations.  According to the American Diabetes Association, nearly 24 million people in the U.S., or 8% of the population, have either Type I or Type II diabetes.  Estimates indicate that nearly 25% of people with the disease are unaware that they have it.  Type I is commonly diagnosed in children, where the body does not produce insulin.  Type II is developed in adults and is the condition where “insulin resistance” develops (cells of the body do not use insulin effectively), and is particularly tied to obesity or bad diet habits.  The number of patients diagnosed with Type II diabetes is growing at an alarming rate.  According to the CDC, the rates of Type 2 Diabetes in the US have increased from 4.8 per 1,000 in 1995-1997 to 9.1 per 1,000 in 2005-2007, a 90% increase.

This is why the estimated annual sales of diabetes drugs in the U.S. are $22 billion.

Clinicians and physicians have long known about the undefined correlation between the litany of health problems associated with diabetes and the link to pancreatic cancer, which is one of the reasons why the Nuvilex deal makes so much sense. 

Several research studies have found that about 80% of patients who have pancreatic cancer also have glucose intolerance issues or diabetes.  Another study found that people diagnosed with diabetes after age 50 are eight times more likely to develop pancreatic cancer compared with the general population. While there is not a definitive cause-effect relationship, two theories are prevalent in the medical community.  One, pancreatic cancer may result in diabetes and two, the conditions that cause diabetes may cause abnormal growth in the pancreas and lead to subsequent pancreatic cancer.

Clearly, Nuvilex plans to take advantage of the soon-to-be acquired early-stage diabetes treatment technology and research combined with its advanced pancreatic cancer trials data to leverage its platform live-cell encapsulation technology to treat both diseases.  Moreover, considering that the animal study data to date indicates that the need for insulin therapy could be eliminated through the use of its live-cell encapsulation-based technology, Nuvilex is moving yet another step closer toward introducing a game-changing multi-disease treatment platform that is potentially worth billions in annual sales. As a result, Nuvilex is a must-own stock.

For more information, refer to our previous NVLX Reports, Updates and Hot Topics by visiting www.GoldmanResearch.com

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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.

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