BALTIMORE, MD--(Marketwired - Jul 17, 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 that after reviewing the structure of Nuvilex's (
As a result of the aforementioned acquisition, Nuvilex now owns exclusive worldwide licenses associated with the live-cell encapsulation-based pancreatic cancer treatment. Plus, 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.
It should be noted that it is not uncommon for small biotechs to acquire intellectual property via license. However, many firms make the common mistake of biting off more than they can chew as the management team's collective eyes get big in anticipation of all of the benefits a license execution can offer. These firms invariably acquire associated entities or non-core assets in conjunction with an exclusive IP license that too often doom the firms that are run by scientists and not operators, and the end result is an ugly mess, with no access to capital.
In the case of Nuvilex, management originally intended to go down the path of acquiring the entity that owned the subsidiary that owned the IP. It could have been clean and simple and would have also meant acquiring senior personnel, overhead, and unrelated costs. Moreover, such a deal would have likely required greater investment dollars (and 100M shares) which would have resulted in substantial dilution.
By taking a very slow and steady approach, and focusing on the most critical piece of the acquisition (exclusive license) instead of becoming too big too soon (by acquiring the entity), management executed a great deal for shareholders.
Now, shareholders in Nuvilex own the exclusive rights to a highly efficacious oncology treatment platform that may be used to treat multiple forms of cancer, based upon tremendous Phase II clinical trial results. Moreover, by demonstrating prudence and patience, the Company should be able to increase its product treatment arsenal and attract new partners and investors, as needed. Therefore, with the wind at its back, and a history of clinical and M&A success, shareholders appear primed to be rewarded with higher stock prices in the future.
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About Nuvilex, Inc. (