Nuvilex’s just released shareholder update indicates that recent and pending milestones set the stage for a big 2014 for the Company.
Download Report in PDF Or Scroll down to read the complete report below.
Live Cell Inventory Solidified
NVLX announced that has retained a 14.5% ownership stake in SG Austria. Retaining a meaningful minority stake in the Company enables access to senior SG Austria personnel, if needed, during the clinical development process.
Even Nuvilex’s Financials Are Markedly Improved
As evidenced by the ability of the Firm to close the cancer treatment platform acquisition and generate funding commitments for the diabetes treatment rights, Nuvilex is in much better financial shape than it has been in many years. To that end, the Company settled a $2.2M debt owed to Cornerstone Bank, thus eliminating the largest single liability from its balance sheet. The removal of this line item will be reflected in upcoming filings. Moreover, management expects that the balance sheet will continue to improve in the coming quarters. All of these steps bode extremely well for Nuvilex to tap into strategic and investment capital for future clinical trials, as well as operations.
Diabetes Treatment Adds a Multi-Billion Dollar Blockbuster Prospect to its Arsenal
Diabetes is a major health issue in the U.S. 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” (cells are unable to utilize insulin properly) occurs, 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.
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.
Clearly, Nuvilex plans to take advantage of the soon-to-be acquired early-stage diabetes technology and research combined with its advanced pancreatic cancer trials data to leverage its platform technology to treat both diseases. Moreover, considering that the diabetes treatment data indicates that it could eliminate the need for insulin therapy, Nuvilex is moving toward introducing a game-changing treatment platform that is potentially worth billions in annual sales.
We continue to rate these shares Speculative Buy with a $0.75 price target.
Recent Trading History For NVLX
You Might Also Like
Senior Analyst: Robert Goldman
Rob Goldman founded Goldman Small Cap Research in 2009 and 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.
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.
This Opportunity Research report was prepared for informational purposes only. Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces research via two formats: Goldman Select Research and Goldman Opportunity Research. The Select product reflects the Firm’s internally generated stock ideas while the Opportunity product reflects sponsored research reports. It is important to note that while we may track performance separately, we utilize the same coverage criteria in determining coverage of all stocks in both research formats. While stocks in the Opportunity format may have a higher risk profile, they typically offer greater upside as well. Goldman Small Cap Research was compensated by a third party in the amount of $750 for a research update. This update is solely the opinion of Goldman Small Cap Research and Nuvilex management has not endorsed or compensated the Firm for this research update. All information contained in this report was provided by the Company. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations.
The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research did not make an independent investigation or inquiry as to the accuracy of any information provided by the Company, or other firms. Goldman Small Cap Research relied solely upon information provided by the Company through its filings, press releases, presentations, and through its own internal due diligence for accuracy and completeness. Such information and the opinions expressed are subject to change without notice. A Goldman Small Cap Research report or note is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed.
This report does not take into account the investment objectives, financial situation, or particular needs of any particular person. This report does not provide all information material to an investor’s decision about whether or not to make any investment. Any discussion of risks in this presentation is not a disclosure of all risks or a complete discussion of the risks mentioned. Neither Goldman Small Cap Research, nor its parent, is registered as a securities broker-dealer or an investment adviser with FINRA, the U.S. Securities and Exchange Commission or with any state securities regulatory authority.
ALL INFORMATION IN THIS REPORT IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESSED OR IMPLIED, OR REPRESENTATIONS OF ANY KIND. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE FOR THE QUALITY, ACCURACY, COMPLETENESS, RELIABILITY OR TIMELINESS OF THIS INFORMATION, OR FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT MAY ARISE OUT OF THE USE OF THIS INFORMATION BY YOU OR ANYONE ELSE (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF OPPORTUNITIES, TRADING LOSSES, AND DAMAGES THAT MAY RESULT FROM ANY INACCURACY OR INCOMPLETENESS OF THIS INFORMATION). TO THE FULLEST EXTENT PERMITTED BY LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY, OR OTHER THEORY WITH RESPECT TO THIS PRESENTATION OF INFORMATION.
For more information, visit our Disclaimer: www.goldmanresearch.com