NorthWest Biotherapeutics Inc (NWBO)

[Chiugray]

Smitty, There is the standard two opposing viewpoints. What drives stock price: trailing earnings or future value and projected future earnings. Typically, mature low-growth companies use trailing earnings. High growth, innovative companies use future potential.

I think the answer depends on how one views NWBO/DCVax platform.
- If you view NWBO as a trailing earnings company, then that’s your choice.
- I view NWBO as an emerging, innovative platform that will change the landscape of cancer therapy. Wall Street normally rewards these high-potential innovativors with premiums as their dominance increases.

You used the example of Nvidia. I would dispute your narrative that Nvidia is a trailing earnings company. They have a PE ratio of ~55 while S&P ave is ~20-25. Nvidia is valued for future growth and innovation potential too.

Here’s my narrative comparing Nvidia’s emerging valuation to how NWBO may play out:
Just like early Nvidia investors initially saw it as “just a graphics chip company,” early NWBO skeptics may see it as just a typical single-drug, single-cancer biotech.

But investors’ understanding will evolve, as the company’s full platform and ecosystem unfolds:

Nvidia went from gaming GPUs to AI/data center chips and subscription models. NWBO’s DCVax similarly is evolving from a personalized cancer vaccine to a broad-spectrum cancer vaccine platform technology.

Nvidia grew from a chip seller to an AI ecosystem enabler. NWBO is building a “dominant franchise” with integrated Flaskworks/Eden manufacturing, Advent cryostorage and is likely to do non-exclusive partnerships and multiple revenue streams across cancer indications.

Nvidia’s stock price surged with real proof of earnings and scalable products. NWBO’s MHRA approval is critical, but Wall Street will look for evidence it can capitalize on that approval with revenues and profits, for example driven by the “network effect” created with each new BP franchisee.

So parallels with Nvidia’s transition are apt, particularly not “just one drug” but a vaccine platform with ecosystem potential and recurring revenue streams poised for substantial growth, which mature investors eventually recognize.