Nuvilex, Inc.: Big Pharma Is in a Buying Mood
BALTIMORE, MD -- (Marketwired) -- 09/03/13 -- In a newly released
article, Goldman Small Cap Research, a stock market research firm
focused on the small cap and microcap sectors, notes that due to the
R&D model for large pharmaceuticals, it is often cheaper and more
prudent to acquire, or invest in, a younger firm, in order to gain
access to its technology than build one from scratch, as exemplified
by the recent purchase of Onyx Pharmaceuticals, Inc. by Amgen, Inc.
This recent buyout of a cancer treatment biotech by a major
pharmaceutical firm bodes well for Nuvilex, Inc.'s (OTCQB: NVLX)
Interestingly, despite their relative size, experience, and deep
pockets, many large pharmaceutical and biotech giants appear to lack
the innovative spark internally. Essentially, the success of these
firms in clinical trials could almost be viewed as a numbers game, as
these behemoths achieve success more so from the sheer number of
trials in which they engage rather than innovation. If a firm has
conducted 25 separate trials over a given period, it is bound to have
greater success than the Firm that has conducted two.
Due to the heavy cost structure associated with these trials, and the
fact that big pharma has its own cost structure that may sometimes be
higher than smaller firms, it appears to be cheaper and more prudent
to acquire, or invest in, a younger firm, in order to gain access to
its technology. Not only does it usually cost less to execute a
transaction of this type, but if a bigger Firm's mandate is to enter
or attempt to lead in a specific therapeutic category, clearly a
business development-based transaction makes more sense than taking
the years to build and develop a therapy from scratch.
Now that Nuvilex has the live-cell encapsulation platform to treat
oncology rights under wraps its profile in the biotech community has
likely changed. As a result, as the Firm prepares for the final
stages of clinical trials for its pancreatic cancer treatment, its
profile has been raised enough to warrant much closer looks at the
technology by larger players that have not succeeded in even
completing Phase II trials to treat the same disease. Moreover since
this biologic-based delivery platform is geared to potentially be
used in conjunction with pro-drugs to treat a multitude of diseases,
its value may be greater than just a typical, narrow, drug-based
While it is natural for investors to interpret the value a larger
firm would have on Nuvilex, the value proposition that Nuvilex offers
a larger firm should not be discounted either.
To view all of our sponsored Nuvilex reports, updates, articles,
disclosures and disclaimers, or to download the article in its
entirety, please visit www.goldmanresearch.com.
About Goldman Small Cap Research: Led by former Piper Jaffray analyst
and mutual fund manager Rob Goldman, Goldman Small Cap Research
produces sponsored and non-sponsored small cap and micro cap stock
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About Nuvilex, Inc. (OTCQB: NVLX): Nuvilex, Inc. is an international
biotechnology firm focused on developing and preparing to
commercialize treatments for cancer, diabetes and other diseases
based on its live, therapeutically valuable, encapsulated cells
platform. For more information visit: www.nuvilex.com.
Goldman Small Cap Research
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