NorthWest Biotherapeutics Inc (NWBO)

[biosectinvestor]

The reality is, after years and years of work, and with real product and capabilities worldwide, Cognate as a fully developed company is worth substantially less in a buyout than NWBO is speculatively right now in the markets.

Advent has no IP. It is people. The property they are developing on right now is leased from NWBO.

The risk of hiring those people and getting that CGMP status, the costs, are isolated from NWBO, but there is not a huge amount of value being created that the market sees. It is only shorts and false critics.

The fact is, a private equity find will happily develop ancillary businesses to support a much larger business and keep the risks isolated. The cost of employees would only accelerate the dilution and undermine the value proposition for a buyout at at a good price in the current scenario, IMHO. So isolating that cost, I believe, is highly additive for shareholders and the cost of acquisition, should NWBO see any value in that, will be far less, later on, as we see with CR’s 875 million acquisition of Cognate, as a fully finished company, with many employees, factories and operations and CGMP on multiple continents.

While manufacturing is valuable to the companies with the products, as a separate enterprise, it is limited by a need to contain costs, and constant potential for competition. So there is clearly not huge value to be had running a purely manufacturing org. There is a lot of risk, and not a lot of upside.