An extensive article on Northwest Biotherapeutics, Inc. ($NWBO) was published last weekend on SeekingAlpha, that took a closer look at how things have gone over the past few years. In this article a few critical statements are made about the company’s progress. For example, it would have been on the verge of bankruptcy for several years, given that it has been conducting a process that takes too much time. In addition, the necessary criticism is voiced against Linda Powers (CEO) for mismanagement and insufficient correspondence to its investors and shareholders.
There was also concerns mentioned about the late submission of the 10-Q form, which meant that the quarterly report could not be submitted on time. The reason given was that certain pending accounting and valuation issues were delayed. This included the acquisition of Flaskworks and subsequent events. Due to a major change in the fair value calculations for derivative liabilities, as well as other accruals, it was announced that non-cash losses were much greater this quarter compared to the same quarter last year.
Are there any positive developments to report about NWBO? Financially perhaps, the company owns about $5.6 million in cash in the last quarter. Just before the data was unlocked, the capital was raised in two tranches of $5 million and $8 million. In addition, a small company has recently been acquired, which it claims will significantly increase production volumes of DCVax® products and seriously reduces production costs.
The long phase 3 clinical study for the immunotherapy candidate DCVax®-L, as a treatment for glioblastoma, was completed in October 2020. Until today no one including the company itself has access to unblinded data from this clinical trial. NWBO itself remains optimistic about the continuation of research into this dangerous form of cancer. The final goal is for DCVax®-L to become an important treatment option for patients who urgently need better treatment for brain cancer (glioblastoma).
This means that after a troubled period the skies above NWBO may clear up in 2021, as long as they are able to report more about the findings and figures surrounding the completed long phase 3 clinical study. Plus clearly outline the next steps and disseminate them to their shareholders and investors, because DCVax®-L certainly has the potential to further develop into an important treatment option against glioblastoma.
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