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The Northwest Biotherapeutics House Of Cards Is Ready To Collapse

Phase Five Research profile picture
Phase Five Research


  • NWBO has been developing its cancer vaccine, DCVax, for 20 years now, and has very little chance of succeeding in the ongoing phase 3 trial.
  • In the meantime, NWBO’s CEO and Chairperson, Linda Powers, uses the company to financially support her investment in NWBO and other private companies.
  • Specifically, since 2004 NWBO transferred over $300 million to Powers and private companies controlled by her, through transfer of cash, shares, warrants and options.
  • Collected evidence indicates that a company incorporated by NWBO’s independent director, Navid, received $5 million of NWBO securities after he released a bullish research report on the company.
  • We provide evidence suggesting that an Israeli medical center has been selling the unapproved DCVax treatment out with the company’s clinical trials, and that this center may be owned by Powers.


In 2016, Northwest Biotherapeutics (OTCQB:NWBO) will have been developing the DCVax dendritic vaccine for exactly 20 years. This bio-failure-in-the-making exhibits all the obvious signs of a looming disaster: clinical trials stretching over decades, half a dozen trial amendments and extensions, lack of reliable results and publications, an utter mess in reporting on them, and most recently, a sudden unexplained halt to patient enrollment in the Phase 3 trial of the company's lead candidate. NWBO has used probably every trick in the book to prevent the inevitable end and announcing the results of its clinical trials, and for a good reason: as long as failure is not announced, the dream can live on and fresh money can be raised by NWBO which then feeds it to NWBO CEO's private companies.

The lack of corporate governance has allowed NWBO's CEO, Chairperson and President, Linda Powers (former VP Global Finance at Enron), to unscrupulously use the company as her personal checking account to financially support her investment in NWBO and other private companies, mostly Cognate Bioservices Inc, by transferring massive amounts of cash, shares and warrants to herself and companies she owns and controls. In addition, we believe NWBO has been involved in various undisclosed transactions with (1) Powers and her companies, (2) at least one major shareholder and with (3) its "independent director" Dr. Navid Malik.

We have studied NWBO inside out, and below is a brief summary of our findings:

- Clinical development fiascos and forthcoming clinical failure. NWBO has been developing DCVax for 20 years now. We present data that shows why DCVax has very little chance of succeeding in its ongoing phase 3 glioblastoma trial;

- Diluting minority shareholders. Powers and her companies (the "Toucan Group") invested in NWBO approximately $16 million of cash since she first invested in NWBO in 2004 (loans

This article was written by

Phase Five Research profile picture
PhaseFive initiates research-intensive analysis of Healthcare and Biotechnology companies using groundbreaking scientific intelligence tools. We focus on long/short event-driven opportunities centered on clinical, regulatory and early commercial development. Our research approach relies on synergizing diverse talents. PhaseFive’s team is built on the knowledge and vast experience of Neurobiochemistry PhDs, Big Data experts and seasoned Life Science investors. Our track record reflects our ability to assess a company’s true fair value at critical stages, looking beyond hype and misunderstood perceptions. PhaseFive focuses on catalyst events in small-to-medium cap Healthcare companies. These catalyst events include clinical trial outcomes, regulatory procedures and commercial developments.

Analyst’s Disclosure: I am/we are short NWBO. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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