BALTIMORE, MD--(Marketwired - Jul 24, 2013) - In a newly released research update, Goldman Small Cap Research, a stock market research firm focused on the small cap and microcap sectors, notes in a recent article on its website how biotech firms such as Nuvilex Inc. (
It was not too long ago that Nuvilex had what some might view as crippling real estate-related debt from a bad deal executed by prior management. Plus, despite its affiliation with SG Austria, it did not yet own all of the assets and licenses associated with live-cell encapsulation platform technology for pancreatic cancer and all other forms of cancer for that matter. Moreover, the soon-to-be concluded deal at the time included the acquisition of all of the assets of SG Austria which would have resulted in a 22% share dilution and the ownership of non-core businesses that would have bled operating expenses.
Today, the real estate debt looks like it will be settled soon, if it isn't already, all of the oncology-related assets and licenses for the use of the live-cell encapsulation therapy for oncology have been acquired with essentially no dilutive effect, and going forward, operating expenses are held in check since the ownership in SG Austria is 14.5%, instead of 100% of the SG Austria subsidiary, Austrianova Singapore. This step has ensured access to the live cells Nuvilex requires for its trials without the associated overhead of non-core business lines. Plus, when the $1.5M in funds were raised privately to execute the transaction through restricted stock, they were priced at $0.125 with no warrants, earn-outs, milestone payments, or additional debt.
As a result, many market watchers would view the risk inherent in the stock as substantially reduced which in turn may value the stock at a higher price, especially as development progress is measured and reported.
Separately, one of Nuvilex's peers in the pancreatic cancer treatment arena, Merrimack Pharmaceuticals is slated to complete enrollment for its Phase III pancreatic cancer trial with top-line results expected in the next year or so. Any positive news resulting from the trial will likely result in a boost for any stocks in the pancreatic cancer space, as a rising tide lifts all boats -- even in this case where Nuvilex may ultimately likely exceed Merrimack's results, if the success in the first 2 pancreatic cancer clinical trials recur.
Clearly, all of these events and milestones serve to benefit Nuvilex as the stars align for management and shareholders.
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About Nuvilex, Inc. (
Goldman Small Cap Research Rob Goldman Analyst 410-609-7100 rob@goldmanresearch.com
