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June 25, 2013

Nuvilex Primed to Succeed Where Others Have Failed

In 1971, U.S. President Richard Nixon proclaimed a war on cancer. In the 40+ years since that proclamation, the jury is still out on whether or not we are winning the battle.  After all, the National Cancer Institute (NCI), charities, foundations, and company investments targeting anti-cancer research have likely spent well over $100-billion in funding research and development projects.  During this time, cancer screening and prevention have been huge tools in the cancer fight, but there is still no single approved treatment that could be considered a “holy grail.”  If a treatment is developed to successfully treat multiple forms of cancer in the coming years, it would come as no surprise if that offering incorporates the live-cell encapsulation therapy under development by Nuvilex, Inc. (OTCQB – NVLX - $0.107 – Spec Buy), and it would likely be worth billions of dollars.

Interestingly, the proliferation of early cancer screening and the cessation of smoking have been universal methods which have been used in recent years to prevent cancer. Yet, there are no universally approved therapies on the treatment side.  Moreover, most of the treatments today are akin to poison, as they are toxic to healthy cells as well as cancer cells and often cause such severe side effects that some patients opt out of the treatment altogether.

Nuvilex’s patented live-cell encapsulation technology enables the targeted placement and delivery of any cell type into the body after enclosing the cells inside tiny beads. This platform does not encapsulate drugs, but live cells. Depending on the cell type placed into the beads, or encapsulated, these cells enable continuous and/or controlled production and release of targeted therapeutic molecules via an innovative delivery system.  The capsules enclosing the live cells are made largely from cellulose a bio-inert, non-toxic, biocompatible material that protects the encapsulated cells from attack by the body's defense mechanisms. At the same time, the beads provide a microenvironment that enables encapsulated cells to survive for long periods of time, which is a major advantage over others’ encapsulation technologies and critical for future storage and mass deployment.

By using the technology, it is possible to create small cell-based factories that can be made to 1) convert inactive drugs into the active ones, 2) produce bioactive therapeutic substances,  and for numerous other applications.  In the case of the drug-converting “factories” and their use in cancer therapy, cells inside the capsules are deployed directly at the tumor site to create a continuous high concentration of active cancer fighting molecules (active drug) and in effect provide a dramatically elevated dose of active drugs right where they’re needed, the tumor. 

At its core, the very nature of the Nuvilex delivery platform and therapy is unique relative to existing therapies. Therefore, it may ultimately be used to treat multiple forms of cancer given the mechanism of action, the highly concentrated and targeted placement concept, and low toxicity associated with the therapy.  As Nuvilex continues on to the next phase of development following successful Phase II clinical trials to treat advanced inoperable pancreatic cancer, we may perhaps be witnessing the dawn of a new universal cancer therapy. 


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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