Why Northwest Biotherapeutics, Inc. Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Northwest Biotherapeutics (NASDAQ: NWBO  ) , a clinical-stage biopharmaceutical company developing immunotherapy agents to treat cancer, advanced as much as 16% after announcing an agreement for a large-scale expansion of its manufacturing, storage, handling, and distribution of its DCVax-L and DCVax-Direct products.

So what: According to Northwest Biotherapeutics' press release, the company entered into a contractual agreement with Cognate Bioservices for manufacturing services. These agreements, "provide for a comprehensive scale-up program for expansion of the Company's clinical programs in both the US and Europe, and for any compassionate use programs or other early access or expanded access programs which the Company might undertake." In other words, Northwest Biotherapeutics is gearing its production up for eventual commercialization and increased clinical testing.

Now what: Obviously, investors are quite pleased with the fact that NW Bio is boosting its manufacturing capacity, which can only be viewed as a sign that it feels confident about its cancer immunotherapy product line. It's hard to deny that immunotherapy agents aren't all the rage lately, but few have been able to demonstrate consistent clinical promise. While a step in the right direction for NW Bio, it's also a very minor step. I'll need to see clear indications of DCVax-L's success in mid and/or late-stage trials before I would even consider NW Bio a viable investment opportunity. As of now, we could be looking at a company counting its chickens well before they're hatched.

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  • Report this Comment On February 24, 2014, at 10:41 AM, naughtyguy wrote:

    You write: "While a step in the right direction for NW Bio, it's also a very minor step. I'll need to see clear indications of DCVax-L's success in mid and/or late-stage trials before I would even consider NW Bio a viable investment opportunity. As of now, we could be looking at a company counting its chickens well before they're hatched." They have already issued clear success in mid-stage trials and are well under way in their phase 3 trials. You don't see this as a sound investment? Look at the stock price for the past three months. When you buy a stock and it doubles in price is that not a good investment?

  • Report this Comment On February 26, 2014, at 1:25 PM, GBMConqueror wrote:

    I'm alive today because of NW Bio because of their persistence in development of DCVax! Twenty-nine months ago at the age of 48, I was diagnosed with a "tennis-ball" sized Stg 4 tumor in my left temporal lobe. ...that was during DCVax Phase II... Now, after 7 vaccinations using my own cancerous tumor and dendritic cells extracted from my white-blood cells, I feel absolutely terrific, "aw" inspired and amazed.

    Sure, I have purchased a few shares in hopes of benefiting from their business and financial success --BUT-- I have already benefited from their Clinical study success. I am still very happily employed for nearly 30 years in IT. My employer and customers continue to benefit from my knowledge ... even if a bit of that knowledge was lost due to a cancerous brain tumor ;)

    @GBMConqueror

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