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October 31, 2013

Traders Eyeing Near-Term Upside in Nuvilex’s Shares

Savvy traders and followers of Nuvilex, Inc. (OTCQB – NVLX - $0.114 – Spec Buy), an international biotechnology company providing cell and gene therapy solutions for the treatment of diseases can sense that a return to much higher levels is brewing. For starters, the Company’s shares have reached a key pivot point at current levels by filling the current gap, and have strong support at the $0.112/$0.113 mark.  As a result, even the slightest catalytic event could take the stock through its near term resistance point of $0.122 and back to the $0.15 range where it based earlier this summer.

Close followers of the stock are likely aware that management provided shareholders with a glimpse of major events ahead which would certainly qualify as a catalytic event to propel the stock higher. A few months ago, Nuvilex management announced that it anticipated closing the acquisition of rights to a live-cell-based encapsulation therapy to treat diabetes in October. This delivery system and mechanism of action is similar to the current live-cell encapsulation technology the company owns to treat pancreatic cancer as well as all other solid tumors. 

Well, the month is just about over so could this be the catalytic event the stock needs?

With estimated annual sales of $22 billion for diabetes drugs in the U.S., this deal would be a game-changer. Moreover, from the clinical standpoint, it is the logical play. 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. While there is not a definitive cause-effect relationship, two theories are prevalent in the medical community.  For one, pancreatic cancer may result in diabetes and for two the conditions that cause diabetes may cause abnormal growth in the pancreas and lead to subsequent pancreatic cancer.  Future research data results will determine if this holds true.

Clearly, Nuvilex plans to take advantage of the soon-to-be acquired early-stage diabetes treatment rights and research combined with its advanced pancreatic cancer trials data to leverage the platform live-cell encapsulation technology to treat both diseases. With the treatment therapy for both diseases under the same roof, it is likely that Nuvilex’s shares enjoy an extended run-up rather than just a swift move back to a former trading level. 

For more information, refer to our previous sponsored NVLX Reports, Updates and Hot Topics by visiting www.GoldmanResearch.com

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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