Written by ι Stock Market Media Group Staff — July 30, 2013
Nuvilex, Inc. (OTCQB: NVLX) became a much more valuable company in July when it closed a deal it was fully prepared to pay a great deal more money for, but while it spent far fewer dollars, the assets it purchased could prove to fetch a price tag exponentially greater than the $1.5 million the company paid. In addition, Nuvilex originally set aside 100 million of its common shares to negotiate a deal to purchase all of the assets of SG Austria to own those that it wanted; at today’s prices the company would have paid close to $20 million versus the $1.5 million it did pay and was able to retain the 100 million shares in doing so.
By completing the acquisition of Bio Blue Bird AG, the once wholly-owned subsidiary of SG Austria and the owner of the assets Nuvilex coveted, the Silver Spring biotech firm strengthened its hand in the cancer arena, became a legitimate biotech, and now controls an entire technology with regard to its use in any type of cancer treatment. Nuvilex now owns exclusive worldwide licenses associated with the live-cell encapsulation-based pancreatic cancer treatment it will be using in the company’s future Phase III clinical trials. These licenses include worldwide rights to utilize the live-cell encapsulation platform technology to develop treatments for any and all cancer types, regardless of the cell type encapsulated.
If Nuvilex shows the same success in its future Phase III clinical trials in advanced pancreatic cancer as the data that was presented from the company’s two independent Phase II trials, then this gives the small biotechnology company and its shareholders a very powerful hand in the cancer arena. You can bet a lot of eyes are eagerly anticipating the company entering into late-stage trials and the return of the first bits of data from those trials. If the company can continue to prove its technology will deliver better results than existing therapy using its proprietary and unique live-cell encapsulation, then big Pharma will take notice and like with stem cells, this form of treatment could open up the flood gates for those larger biotech and pharmaceuticals to add to their pipeline, and we all know cancer research is big business.
Nuvilex is quietly setting up what could be a monster pay day when and if it can continue to prove its brand of live-cell encapsulation works. So, while today shares of Nuvilex can be purchased for less than $0.20/share, it might not be too long before you can start adding more zeros to that price. Controlling an entire segment of research is a very big deal, and when companies might want to use Nuvilex’s live-cell encapsulation to produce treatments for breast cancer, prostate cancer, lung cancer, etc., they will have to go through Nuvilex to do so. Those investors who put up the money to purchase Bio Blue Bird clearly had an eye to the future and paid a premium price for the restricted stock that provided funding used to seal the deal. These investors likely understand just how big the cancer business is – tens of billions of dollars are spent every single year on cancer treatments.
And, from the sounds of it, Nuvilex isn’t done. In the July 11 press release announcing the acquisition, Dr. Robert Ryan, President and Chief Executive Officer at Nuvilex, said, “With the acquisition now complete, the assets and worldwide licenses are now officially a part of Nuvilex. It is our intention to expand our cancer treatment capabilities and to obtain additional assets to develop treatments for other serious diseases based on cell therapy and live-cell encapsulation.” This leads us to believe that the company would like to own similar assets in all of the areas it has seen success with the cell encapsulation.
As the company stated, the acquisition represents a substantial milestone in the development and structure of Nuvilex as a biotechnology company. The broad spectrum of uses that the license for the oncology platform covers will provide Nuvilex with significant growth opportunities in the future for various types of cancers, while complementing the Company’s clinical research in the treatment of pancreatic cancer.