SOURCE: Goldman Small Cap Research, Inc.

September 03, 2013 09:30 ET

Nuvilex, Inc.: Big Pharma Is in a Buying Mood

BALTIMORE, MD--(Marketwired - Sep 3, 2013) - 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) future.

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 therapy.

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.

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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 research reports, articles, daily stock market blogs, and popular investment newsletters. Goldman Small Cap Research is not in any way affiliated with Goldman Sachs & Co.

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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:

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