NorthWest Biotherapeutics Inc (NWBO)

[gnawkz]

Some additional details regarding Manufacturing in Europe as posted in their most recent 10-Q:

5. Cash in Custody Account

During the six months ended June 30, 2014, the Company continued its efforts to obtain large new manufacturing capacity for its DCVax products in Europe. This capacity will be developed and managed by Cognate BioServices pursuant to the Manufacturing Expansion Services Agreement entered into by the Company and Cognate in January, 2014. Under that Agreement, the Company is responsible for the costs of developing and maintaining manufacturing facilities or capacity that is dedicated exclusively to production of NWBT’s DCVax products.


The Company found a suitable site and facility in Europe. Negotiations with the Seller for purchase of the property and facility continued for months. At the Seller’s direction, the purchase terms and transaction documents were expected to be finalized by June 30, 2014. On June 25, 2014, in preparation for the anticipated completion of the transaction, and due to the uncertain timing of international wires, the Company wired to the law firm handling the transaction $3.4 million for the payment at closing. The law firm held the $3.4 million in its client account. On June 30, 2014, in anticipation of a closing occurring that evening, the law firm sent $2.6 million to the Seller’s law firm to hold in trust, pending the closing of the purchase transaction. However, the transaction terms and documents were not finalized by June 30, 2014, and the Seller was not prepared to proceed with the transaction at that time. The funds continued to be kept in the two law firms’ trust accounts ($2.6 million in the Seller’s law firm and $0.8 million in the Purchaser’s law firm), and the Company was free to decide not to proceed and take the funds back. As of August 14, 2014, deal terms to the Company have not been finalized.

It looks like payment has already made its way into Escrow accounts and just waiting for final pending items.

With the manufacturing facility close to being established, I think Hospital Exemption patients will finally begin coming online. According to NWBO's Germany Hospital Exemption announcement PR back in March 2014, it looks like the DCVax-L must be manufactured in Germany in order to be used for treating GBM.

DCVax-L products that are to be covered by the Hospital Exemption in Germany must be manufactured in Germany, but can be administered to patients from anywhere. As in the Company’s clinical trial, DCVax-L will be administered under the Hospital Exemption as an adjuvant treatment after surgical removal of the tumor and radiation/chemotherapy where applicable. The Company will provide annual data reports to the German regulatory authority during the five-year term of the Hospital Exemption.

Hopefully, I am completely wrong about the 12 month negotiation on pricing and negotiations are completed by the end of Sept. It would be amazing to see some revenues flowing in by year-end.