|Micro-cap Nuvilex rises on technology acquisition buzz|
|Tuesday, 31 May 2011 14:22|
Goldman, who spoke to management at the company extensively as part of his coverage, has stated that new leadership had just come in and energized the company with the swift execution of key milestones. Late last week the company announced that it had just completed the acquisition of pancreatic cancer treatment technology from "a world leader" in living-cell encapsulation technology.
Among the details given were notes that the technology involves the targeted delivery of encapsulated living cells capable of delivering and converting standard inactive chemotherapeutic cancer drugs (pro-drugs) into active, chemotherapeutic (cancer-fighting) drugs directly to pancreatic tumors. Officials said in a press-release that the technology allows for the use of overall lower pro-drug doses, dramatically decreasing the overall body exposure to such toxic agents, yet with greater clinical effect. This positive clinical effect is due to the mechanism of delivery of the final active cancer-fighting drug, namely the encapsulated pro-drug-converting living cells specifically delivered to the pancreatic tumor site.
Now we are hearing credible rumblings that Nuvilex is about to release more details about the acquisition and data from the Phase II clinical trial carried out in Europe against pancreatic cancer using this newly acquired technology. If the reports from our sources are true, then this stock is clearly undervalued and could be headed significantly higher. This type of development would indicate to us that Nuvilex has acquired a late-stage ready candidate which could launch (either Phase Phase IIB or Phase III) clinical trials here in the U.S. based on the data they gathered in Europe. That could happen in short order and the market cap for the company does not in any way currently reflect the market potential for this technology or the new proposition to the investment community.
It is interesting to note that Goldman issued a Speculative Buy rating with a $0.50 price target. If this news development comes to pass, the stock would certainly be in line to receive a boost for its valuation price. It's also interesting to point out that company did officially announce recently that it had finalized an aggressive growth strategy to pursue available opportunities with plans to combine ongoing research and product development; including licensing agreements and the acquisition of targeted companies within the industry.
Dr. Robert Ryan, CEO of Nuvilex, sounded bullish on last week's announced acquisition, stating: “This landmark achievement solidifies our commitment to being a leading force in the biotechnology arena. The technological advancement creating encapsulated living cells is a remarkable breakthrough. Our newly acquired technology will allow oncologists to deliver live cells capable of creating localized high levels of chemotherapeutic drugs within the pancreatic tumor itself while minimizing the serious side effects often associated with such cancer treatment. With pancreatic cancer responsible for 36,800 annual deaths in the U.S. alone in 2010, bringing this technology to market quickly is a top priority for Nuvilex.”
Nuvilex closed up 13.33% for the day.