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2011 18064
program. In addition to that, another cancer treatment, the Provenge by Dendreon, has already been
applied for as a cancer treatment, making Onyvax-P less sought after. However, the downfall of Onyvax
could also be attributed to the fact that investors had been impatient. As stated by Dr. Angus Dalgleish,
Onyvax-P could have out-performed Dendreons Provenge had investors had the confidence to set store
in the predicted nine-month survival rates. However, contrary to what is favorable to Onyvax-P
development, the investors pulled out after Onyvax produced results at par only with Provenge. Provenge
also underwent a "melt up", bringing with it other biotechnology companies. The fact that biotechnology
companies are in the middle of a perfect storm could also have affected the marketing and acquisition
strategies of Onyvax. The perfect storm pertains to the global financial crisis of 2008 wherein venture
capitals were reduced resulting to lack of funds of biotechnology companies for the succeeding 6 to 12
months. Hence, 11 biotechnology companies have already filed for bankruptcy as the financial crisis can
affect small companies such as Onyvax (Karberg, 2009).
Aside from these reasons, the management of Onyvax had succumbed to the leverage of finance
or funding wherein a company buys assets using borrowed funds in the hopes that the income from the
asset will be larger than the borrowed money. Of course, it follows that the risk of actually having larger
borrowed money than the income of the asset is present which will result to incurring losses. And this is
exactly what happened with Onyvax. Thus, the company also increased its liabilities in the end. Onyvax
also only has a limited intellectual properties and services, with its scope usually within prostate cancer
only. This means that the income for the company is also unstable (EPSRC, 2012).
Summarizing the factors presented, Onyvax will eventually become bankrupt and indeed, this is
what happened. The lack of investors to continue the clinical trials and development of the cancer
vaccines, as well as lack of funds to pay off debts, led to its demise. Shortly after that, VaxOnco Inc
announced its acquisition of rights to the Onyvax-P cell vaccines and Onyvax applied for bankruptcy
(Onyvax, 2009).
References
DueDil. (n.d.). Onyvax Limited. Financial statement of in West Yorkshire. Retrieved September 29, 2014,
from https://www.duedil.com/company/03095391/onyvax-limited/financials
EPSRC. (2012). UCL Innovative Manufacturing Research Centre. Engineering and Physical Sciences
Research Council. Retrieved September 30, 2014, from
http://www.epsrc.ac.uk/newsevents/pubs/ucl-innovative-manufacturing-research-centre/
Karberg, S. (2009). Biotech's Perfect Storm. Cell, 138(3), 413-415.
Onyvax. (2009). Onyvax - Cancer Vaccines. Onyvax - Cancer Vaccines. Retrieved September 29, 2014,
from http://www.onyvax.com/html/about_onyvax/0/index.html
Pantginis, J., & Gregorek, L. (2008). The state of cancer immunotherapy: pivotal times ahead. Canaccord
Adams: Equity Search, 128, 1-117.
Appendix
TABLE 1. The net worth of Onyvax from 1999 until 2008. The changes in the net worth from 1999
to 2008 is tabulated in the graph (DueDil, n.d.).
Year
Net Worth
1999
-1,239,731
2000
-2,838,518
2001
4,450,902
2002
7,486,000
2003
4,061,000
2004
-309,000
2005
-6,338,000
2006
-11,877,000
2007
-3,202,246
2008
-7,630,502