October 22, 2013
Nuvilex, Inc.: Anatomy of a Biotech
Due to the nature of the research and development process, biotechnology stocks typically do not generate a lot of news flow regarding milestone events. In fact, due to a plethora of key conferences in high-profile treatment categories such as cancer and diabetes, it seems as if many biotech stocks have news front-end loaded in the first half of the year, which helps drive valuations and share prices. In the absence of news or the achievement of milestone events, these stocks tend to decline throughout the second half of the year, prior to beginning the cycle all over again in the late fourth quarter of the year. While Nuvilex, Inc. (OTCQB – NVLX - $0.12 – Spec Buy) has only incrementally participated in this biotech stock decline, a series of upcoming milestone news events appear to be catalysts that should move the stock substantially higher, prior to the seasonal biotech surge.
Before year-end, it is anticipated that the Company will not only provide a progress report on its live-cell encapsulation-based therapy to treat pancreatic cancer but also should close on the acquisition of the rights to use that same technology platform for the development of a diabetes therapy. Such an event would dramatically boost the Company’s valuation given the huge, untapped market opportunity that lies ahead for Nuvilex. Interestingly, during this time of year, a number of early – mid stage biotechs engage in dilutive financings that can also serve as a drag on biotech shares. As evidenced by the largely non-dilutive fundraising event by Nuvilex earlier this year for the oncology rights, investors do not have to worry about management engaging in these types of financings to further its R&D objectives, which is a major plus.
Looking ahead, progress on the GMP (Good Manufacturing Practices) facility in which the cell encapsulation for its pancreatic cancer treatment will be done, a requirement for all Phase 3 clinical trials, and the cell cloning and cell storage initiatives will likely catch the attention of investors and biotech watchers alike later this year, again boosting these shares. In the near term, the pending 3Q13 financial report from Celgene (NASDAQ - CELG), which is due later this week, will place further attention on the pancreatic cancer treatment sector, and by association, Nuvilex.
Clearly, Nuvilex is not built like typical biotechs. And that is a good thing.
For more information, refer to our previous sponsored NVLX Reports, Updates and Hot Topics by visiting www.GoldmanResearch.com
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Senior Analyst: Robert Goldman
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