Nuvilex, Inc. and Biotech Valuations 101
BALTIMORE, MD--(Marketwired - Aug 29, 2013) - In a newly released research update, Goldman Small Cap Research, a stock market research firm focused on the small cap and microcap sectors, provides a primer on Nuvilex, Inc. (OTCQB: NVLX), its valuation, and Wall Street's decades-long standard valuation methods for biotechnology companies.
In the Opportunity Research update, Goldman provides a snapshot of the Company's recent accomplishments.
"In early 2011, a new management team joined the Company with the objective of dramatically shifting the focus of the company from nutraceuticals to biotechnology, along with cleaning up the balance sheet. The new leadership, led by experts with vast experience in bringing products through the FDA process, ultimately acquired the rights to a novel encapsulation technology platform using live cells and prodrugs that could potentially serve as a delivery platform to treat multiple diseases. Separately, management plans to close on the acquisition of the same technology rights for the treatment of diabetes. This transaction is funded and should close in a couple of months."
"By the end of October 2013, Nuvilex will have closed two technology platform acquisitions representing billions in market size with funds raised from accredited investors. In addition, the Company has reduced debt by $2.2M, streamlined operations, and is preparing all of the steps necessary to launch the next phase of clinical trials."
Goldman also provides a primer on biotech company valuations, and comments on the valuation assigned Nuvilex and some of its peers.
"Biotech stocks that do not have FDA-approved products available for sale are valued based upon the most recently completed phase or phases of clinical trials and the market size of the therapeutic prospects. Anything in the Company's history that is unrelated to the R&D cycle and milestones is largely considered irrelevant and not used in the valuation process."
"As with any biotech, the proper measure for Nuvilex's valuation is a comparison to a peer group; in this case, other mid-late stage biotechs. While there is no direct peer, there are a number of firms either in Phase II/III, in oncology, or those that have a somewhat similar therapeutic platform to Nuvilex. They carry market caps that range from $50M to $400M, and the firms have an average market cap of around $170M, compared with Nuvilex's current market value of Nuvilex of $70M. With major milestones already achieved in just a few months, and with the shares trading at a large discount to the peer group's average market cap, Nuvilex's shares offer great potential."
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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.
