Written by ι Stock Market Media Staff — August 7, 2013
Nuvilex, Inc. (OTCQB: NVLX) is methodically laying the foundation today for what should be a very busy and promising future tomorrow. After making a blockbuster deal to acquire Bio Blue Bird and its worldwide licenses associated with the live-cell encapsulation platform technology to develop treatments for all cancer types, Nuvilex announced this week that it now intends to do the same thing with diabetes.
When Nuvilex pulls off this acquisition, it will control 2 of the big 3 multi-billion dollar drug markets – cancer and diabetes – with regard to the use of this unique and proprietary live-cell encapsulation technology.
The company’s intent is to capture the exclusive worldwide rights for the use of the live-cell encapsulation technology for the development of treatments for diabetes from SG Austria Pte. Ltd. According to the American Diabetes Association, in the U.S. alone, $176 billion is spent annually on medical costs associated with diabetes with over $22 billion of that being spent on treatments for the disease.
Recent estimates project that as many as one in three American adults will have diabetes by 2050. With these numbers growing dramatically, so too are the costs for treatment. Nuvilex said it expects to close this deal at the end of October.
By 2020, the annual market for diabetes medicines is projected to reach $65 billion worldwide. Statistics released by the International Diabetes Federation state that over 370 million people around the world have been diagnosed with diabetes and almost another 190 million remain undiagnosed – leaving many millions susceptible to the debilitating, and even deadly, complications associated with this disease.
By acquiring Bio Blue Bird, Nuvilex now owns the exclusive worldwide licenses associated with the live-cell encapsulation-based pancreatic cancer treatment that has been used in two independent Phase II clinical trials which produced results that were better than those of the current standard single-agent treatment (GEMZAR, also known as gemcitabine) for advanced, inoperable pancreatic cancer. These licenses give the Company 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. Essentially Nuvilex now controls this market for any company or entity that chooses to use the technology to treat any type of cancer.
In animal studies using the live-cell encapsulation technology, a type of “artificial pancreas” was developed that controls blood sugar levels and eliminates the need for insulin treatment. In a 6-month study, pancreatic islet cells from pigs were encapsulated using the technology and the capsules containing the islet cells were then implanted into diabetic rats. Within only a few days, the blood sugar levels of the rats became normal and stayed at normal levels for the duration of the study.
When the capsules were removed from the rats at the end of the study, the islet cells inside the capsules were still alive and functioning. Pigs were chosen as the source for the pancreatic islet cells because, biologically, they are the closest to humans. Because islet cells from pigs (“foreign” donors) could be implanted in rats without the cells being rejected, this proves the islet cells inside Nuvilex’s capsules were protected from attack by the rats’ immune systems.
This “proof-of-principle” study verifies that Nuvilex’s type of live cell encapsulation can be used for the development of treatments for diseases other than cancer. As the Company moves forward in the diabetes arena, expanded animal studies will be conducted; these studies should ultimately lead to clinical trials in humans with insulin-dependent diabetes.
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 two independent Phase II trials, then for many companies, the rush will likely be on to introduce Nuvilex’s live-cell encapsulation technology to their own treatments in order to grow their pipeline. But by that time, the Company will have already laid the foundation by buying up all of the assets that these other companies could very well covet. After all, Nuvilex will then control two-thirds of the largest drug markets in the healthcare industry as it relates to these assets, and by showing success with its live-cell encapsulation technology, this small international biotech firm could start a new trend in therapies that all start right at its door.