Replies to post #430331 on NorthWest Biotherapeutics Inc (NWBO)

[MI Dendream]

Ionis basically structured itself in the way you are suggesting. They sold disease state rights for antisense development to a variety of biopharma. They launched one themseleves and have partnerships that prevent them from being taken out.

This is old school biotech, back when the start ups made deals for cash instead of selling a bunch of stock. They tried to lock in three or four deals with poisen pills that made anyone takeover lose a bunch of assets.

[Poor Man -]

It’s important to understand one basic feature of NWBO: it’s not a real operating company. Right, it’s not a real company. What NWBO is a special purpose vehicle that holds the patients, houses the funding, and contracts out all of its services, including management of the enterprise by Toucan, which is a private equity fund. And as we know, PE funds look to monetize their investments to provide a ROI to their limited partners.

NWBO in its in present form is not a company that’s built to last. And there have been zero steps in the direction of actually building and putting in place an actual company that’s prepared to engaged in R&D, business development, marketing, new trials for Direct, public relations, improved governance, etc. And nearly the entire executive team is at retirement age.

What’s likely to happen is NWBO will be acquired lock stock and barrel. There is an outside possibility for the formation of a spin-off to develop Direct that will be controlled by Merck and partially owned by former NWBO shareholders who will receive shares or CVRs in the Newco.

It’s instructive to compare how Cognate and Sawston were constructed as independent operating companies versus how NWBO is pieced together.

[Chiugray]

Kaisenman, I think the DCVax-Direct opportunity of being best-in-class and first line treatment for multiple solid tumors is too big a business to pass up. So I think they take on the big pharma role of mfg/sales and try to capture the larger value there. Licensing and partnerships of Direct can be reserved for combination therapy and second line treatment options.

So the big question is how. I think a big pharma partnership on DCVax-L gives them time and money to make the hard transition from an outsourcing “everything” model to a becoming a global commercialization and sales company (big pharma). That means new mgmt, build out sales, etc… all above my pay grade.