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July 29, 2013

Nuvilex Is Ready To Lead The Medical Marijuana Research Arena

Just last week, Nuvilex, Inc. (OTCQB-NVLX-$0.171-Spec Buy) announced that it has acquired exclusive licenses associated with live-cell encapsulation-based pancreatic cancer treatment and the rights to utilize the live-cell encapsulation platform technology to develop treatments for any and all cancer types, regardless of the cell type encapsulated. This milestone event is not just meaningful for Nuvilex's oncology treatment platform technology, but may accelerate the research engaged by its subsidiary, Medical Marijuana Sciences, Inc.

With exclusive worldwide rights in the entire oncology space, and with broad access to encapsulated live cells, management may elect to study the effects of multiple cannabidiol (CBD)-based cancer treatments. These studies will seek to combine the Company's highly efficacious live-cell encapsulation-based therapies used for oncology therapy, with cannabidiol. The medical marijuana arena is enjoying a great deal of attention and a growing cadre of investors and entrepreneurs as many prognosticators forecast huge revenue growth over the next 3 years as more states pass medical marijuana legislation. For example, independent financial news and data firm See Change Strategy estimates that the U.S. medical marijuana market is worth $1.7 billion and could reach $8.9 billion by 2016.

In a landmark announcement in mid-July of this year, a large-scale medical marijuana research study was just commissioned by the National Institutes of Health. This is significant due to the negative approach the federal government has previously taken towards medical marijuana. Observers may view this news as a potential softening of its position on marijuana which still classifies it as a Schedule I controlled substance.

According to Drexel University's website, Drexel has received a grant for a five-year study of medical marijuana and its impact on drug use and physical and psychological health among young adults in Los Angeles. It is the first large-scale NIH project funded to directly investigate medical marijuana use among young adults aged 18 to 26. The study, "Medical Marijuana, Emerging Adults & Community: Connecting Health and Policy," is being led by Dr. Stephen Lankenau, an associate professor in Drexel's School of Public Health, who was awarded an R01 grant from the National Institutes of Health for $3.3 million over five years, beginning July 1. Ultimately, Lankenau hopes the study's findings can guide medical marijuana policies at local, state and national levels to result in the most positive health outcomes for young adults and communities.

If these kinds of dollars are going to be provided by NIH, Nuvilex appears well positioned to be eligible to receive research lucrative grants or funding from other partner firms seeking to study the efficacy of live-cell encapsulation-based therapies used for oncology therapy, with cannabidiol. Given that virtually no other firm in the space can match its clinical trials and oncology R&D experience, Nuvilex is primed to be a high-profile, go-to medical marijuana research force.

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.

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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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