NorthWest Biotherapeutics Inc (NWBO)

[hyperopia]

Nice post. You’re right, Linda will not sell NWBO for $5B-10B. DCVax is a platform technology that is capable of treating not only most cancers, but also (potentially) auto-immune and many other diseases, so to think its price should be compared to limited CAR-T technology, is ridiculous.

While I think Linda is not looking for a buyout and is certainly prepared to take Northwest to the next stage of growth, knowing her background, I have some doubts that she will fight to stay independent if the right offer comes along. Northwest Bio only has a dozen or so employees, no sales or commercial infrastructure, and a contract manufacturer, so it’s really set up to be sold. If/when DCVax proves itself in ndGBM, the buyout offers certainly will come, since Big Pharma is always looking to add a hot new immunotherapy to the mix. BP is well aware of the difficulties that clinical-stage companies face when transitioning to a commercial-stage company and their offers at this stage may be less than Linda would accept, but you never know.

I can’t help but wonder what someone like Dr. Roger Perlmutter, (the president of Merck’s research labs who is currently running over a thousand clinical trials just studying Keytruda) thinks of the way tiny Northwest Bio has conducted its clinical trial program for DCVax, versus what the true potential could be in Merck’s hands. Based on their understanding of this potential, and their commercial success with Keytruda, it wouldn’t surprise me if Merck put a very solid offer on the table ($20B-30B) if Northwest presents outstanding data.

As an investor, my preference is for Northwest to remain independent and to partner combinations with big pharma. But I would think that almost everyone else, especially scientists, physicians and their patients would probably prefer to see DCVax in the hands of Merck or another big pharma company with the capabilities and resources to allow DCVax to reach its potential in the fastest time possible.