Nuvilex Inc. Reminiscent of Major Biotech Success Stories

On May 14, 2013, Goldman Small Cap Research published an Article on Nuvilex, Inc. (OTCQB – NVLX).  For your convenience, a copy of the article can be found below.
Please see previous NVLX reports for relevant disclosures and disclaimer.

Nuvilex Inc. Reminiscent of Major Biotech Success Stories

Reviewing the current positioning of Nuvilex Inc. (OTCQB – NVLX) and its proprietary live-cell encapsulation platform delivery system is reminiscent of some of the greatest biotechnology success stories of the past 20 years. Some of the companies that come to mind are Genentech (the “original” biotech) which was acquired by Roche, Inc., Amgen, Inc. (NASADAQ – AMGN), the largest independent biotechnology company, and Celgene Corp. (NASDAQ – CELG).
Genentech, which has a major focus on oncology treatments, has some of the largest selling oncology drugs in its arsenal, including Herceptin, Avastin, and Tarceva. These drugs, which treat breast cancer, gastric cancer, pancreatic cancer, non-small cell lung cancer, colon cancer and others, generate around $12 billion in annual sales alone for the company.  One could argue that while the Company has developed a line of drugs in other therapeutic categories, it is the success of its platform technology that has resulted in these industry-leading oncology drugs, and its $47 billion acquisition in 2009.  Clearly, its broad success in oncology, notably treating pancreatic cancer and breast cancer, which sit atop the Nuvilex (OTCQB – NVLX) to-do list, indicate the huge value the market places on oncology treatment success.

Amgen, the world’s largest biotech company with a $78 billion market cap, has grown in part through acquisition and collaborations with many other pharmaceutical firms. One could argue that the Nuvilex (OTCQB – NVLX) platform delivery system could emerge as an agnostic and broadly used system by many pharmaceutical firms due to its high degree of efficacy in its targeted approach, low toxicity, and activation of pro-drugs.  As a result, Nuvilex (OTCQB – NVLX) may elect to license the use of its technology to other firms, for use in their own clinical trials and studies.

With respect to the purity of its oncological pursuits, the Celgene acquisition of Abraxas Bioscience for $2.9 billion in 2010 appears to be a path that many investors could envision for Nuvilex (QTCQB – NVLX). Abraxas, which was noted for its proprietary tumor targeting technology, was acquired after receiving FDA approval for its lead product to treat breast cancer. Moreover, meaningful progress in mid-stage trials to treat other forms of cancer with its platform technology had occurred, making Abraxas a target for Celgene, which was seeking to become a force in oncology, through the Abraxas products.

While an acquisition of Nuvilex (OTCQB – NVLX) is surely not around the corner, collaborations, strategic investments and potential M&A could occur once the Company has an approval in its quiver and other mid-late stage trials, ongoing. At that point, one could more easily identify which path the Company follows. 

A third party paid GSCR for this article.