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November 6, 2013

Unlike Other Biotechs, It Is Full Steam Ahead for Nuvilex

In a year where there have been quite a few misfires in the small biotech world, Nuvilex, Inc. (OTCQB – NVLX - $0.139 – Spec Buy) is a shining star. It seems that not a day goes by when a small to medium sized biotech stock does not take it on the chin. To be sure, the biotechnology industry is characterized as a marathon rather than a sprint. As a result, nearly all companies succumb to fits and starts along the development process.  It is practically a routine event considering it can happen with some frequency.

In Nuvilex’s case, one would be hard pressed to argue against the series of positive developments that have occurred, which have launched the Company’s stock to a settling point in the teens. And, with more good news in the offing, the stock appears poised to hit new highs.  Already this year the Company has acquired rights to groundbreaking live-cell encapsulation technology to treat cancer that has completed clinical trials, raised $1.25 million at a premium to the market with limited dilution, reduced debt by more than $2 million and has made material progress in its plan to launch advanced clinical trials. 

Earlier this week, Nuvilex announced that cloning of the cancer-drug-activating cells required for Nuvilex's future Phase 3 clinical trials has begun at Inno Biologics in its cGMP-compliant facilities. Following receipt by Inno Biologics of four vials of frozen cells capable of converting the well-known anticancer prodrug ifosfamide into its active cancer-killing form, one of the vials was thawed and the cells grown in culture. The cells, which were previously grown by ViruSure in Vienna, were successfully thawed, and approximately 97% of the cells were found to be viable. The best clones will be propagated to obtain large numbers of cells required for the late-phase clinical trials of Nuvilex.

With each small step forward, the risk in these shares decreases and the value of the stock increases. However, when major steps such as the closing of the previously announced diabetes acquisition occurs, incremental moves higher should be replaced by major reductions in risk and an associated substantial increase in value, reflecting the new, large opportunity.

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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