Nuvilex on track to close SG Austria acquisition Print E-mail
By Rob Goldman   
Monday, 26 September 2011 12:04
FDA calendarEarlier today, Goldman Small Cap Research released a report on Nuvilex, Inc. (OTCQB:NVLX), reiterating the firm’s Speculative Buy rating and $0.50 price target.

In late June 2011, Nuvilex announced that it entered into a definite agreement to acquire all of the assets and technologies of SG Austria Pte. Ltd., the world’s leading, live-cell encapsulation company. Goldman now believes that management will close the transaction sometime in October, which should provide a major confidence boost for investors and a dramatic boost in the share price.
As noted in the updated report, Goldman states that “…we may have underestimated the value SG Austria brings to Nuvilex. The broad and ground-breaking uses of the technology, existing revenue generation capabilities, and relationships with major pharma firms and development organizations place it in an enviable tier compared to most companies of its size.”

The broad applications for the Company’s technology include treatment of multiple cancers, enhanced stem cell implementation, and the treatment of life-threatening viral infections. Additional applications under development in the environmental, cosmetics, and probiotics arenas provide even more opportunities for this innovative delivery system pioneer.

Goldman came up with a very clever way of describing what Nuvilex has become. If Nuvilex reaches this full potential, the Company is a game-changing new paradigm. According to Rob Goldman, “Nuvilex has been transformed from a cult-stock with a quirky history to an emerging, broad-based, multi-functional, therapeutic enhancement platform. Think back to the BASF commercials from the late 1990’s. “We don’t make….we make everything better.”  In essence, that is what Nuvilex has with the live-cell encapsulation technology/delivery platform being acquired as part of the SG Austria transaction.”

Judging by the number of industry publications that have featured the Company’s technology in the past few months, Nuvilex has captured the attention of the industry. Goldman believes that this higher profile will result in greater visibility and a higher valuation as milestones are reached.  At last count, Nuvilex and SG Austria have leveraged their technologies to successfully complete clinical and preclinical trials for 5 different therapies. These type of pipelines usually ultimately result in hockey stick-type growth. 

The stock has held up solidly the past few months in the $0.05 range, but that is a fraction of its true value, in Goldman’s. Now that they have had an opportunity to conclude their due diligence, Goldman predicts that Nuvilex is worth $0.20 today just on the oncology, stem cells and anti-viral therapies alone. The $0.50 price target is set for the next six months, on the heels of an expected string flow of positive clinical news and developments, starting with the closing of the SG Austria acquisition as the trigger.

Goldman Small Cap Research initiated coverage of NVLX on May 10, 2011 at a price of $0.026. Shares have doubled and traded as high as $.104 since then.

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