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Northwest Biotherapeutics, Inc (OTCMKTS:NWBO) Just Cleared The Way For Some Good News

Northwest Biotherapeutics, Inc (OTCMKTS:NWBO) Just Cleared The Way For Some Good News
Written by
Chris Sandburg
Published on
October 26, 2017
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Northwest Biotherapeutics, Inc (OTCMKTS:NWBO) shareholders have had a tough time of last year.The company is down around 50% year-to-date and close to 65% across the last 12 months.As many reading will likely already be aware, the primary driver behind this loss has been a phase 3 oncology study in glioblastoma multiforme (GBM), a type of brain cancer, set up to investigate the company's lead development asset – a dendritic cell cancer vaccine. NWBO Daily ChartFor reasons still unknown, the trial was temporarily put on hold (at least, new enrollment was put on hold) and the company went quiet, not revealing the reasons for the hold to shareholders or wider markets. This silence resulted in the spreading of fear and doubt, which in turn resulted in the company being seen as a risky allocation based on the lack of clarity as relates to its lead program.News just hit press that's unrelated (at least on the surface) to the GBM program but that, as it is absorbed by markets, could play a part in lifting some risk weight and, in turn, could push the Northwest higher near term.Here's what we just learned and where it fits into the overarching Northwest Biotherapeutics picture.So, then using question relates to some outstanding lawsuits that management alluded to in recent filings with the SEC. There were four lawsuits in total, one of which related to the company purportedly reporting false data from the above discussed GBM trial and three of which were rooted in certain transactions between the company and two other entities, both of which are controlled by Linda Powers, Northwest CEO.All four suits have been resolved with no monetary cost to Northwest and all that is set to come out of the situation is that the company is going to be little more clear and open with its reporting standards going forward.So what's the importance of this?Well, for any company at this end of the sector, lawsuits can be distracting and can serve to put off any potential trigger pause he might be waiting for resolution before picking up exposure to the company in question. We suspect that's very much the case here and, now that the lawsuits are resolved, this risk factor is removed. This in and of itself should translate to some near-term strength.Outside of this, however we expect that, these lawsuits were part of the reason for the company being so quiet as too how its various development programs (and especially the above-discussed GBM program) is maturing. Now that these are resolved, there is a good chance we are going to see a wave of news hit press related directly to operational activity as opposed to outlying distractions.Management served up some data regarding the GBM program a couple of months ago and suggested that we should see completion (and, subsequently the release of topline numbers) near term. While we can't say for certain that the overall survival and progression free survival thresholds have been met just yet, we suspect that they might have been, which paves the way for data release before the end of this year.Northwest raised some cash during September, with registered direct offering adding around $1.75 million to the balance sheet. This removes any immediate dilution risk, but, and especially if the phase 3 data is positive (and, in turn, precedes a regulatory submission) there is a good chance we'll see some equity issued early next year to fund commercialization. Of cause, if this drug does hit the shelves, any dilution is going to be quickly negated by upside reevaluation.Check out our previous coverage of this stock here. We will be updating our subscribers as soon as we know more. For the latest updates on NWBO, sign up below!Image courtesy of Margaret W. Carruthers via FlickrDisclosure: We have no position in NWBO and have not been compensated for this article.

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