Home Biotech Delcath Systems, Inc. (OTCMKTS:DCTHD) Explodes After Stellar Q3 Results

Delcath Systems, Inc. (OTCMKTS:DCTHD) Explodes After Stellar Q3 Results


Delcath Systems, Inc. (OTCMKTS:DCTHD)

Shares of Delcath Systems, Inc. (OTCMKTS:DCTHD) nearly doubled in market value after the interventional oncology company reported impressive financial results for the three and nine months ended September 30, 2017. The stock gained 90.18% as the company reported a 75% increase in sales.

Delcath Systems, Inc. (OTCMKTS:DCTHD)

DCTHD Stock Performance

Despite the breathtaking rally, Delcath Systems, Inc. (OTCMKTS:DCTHD) continues to trade in a downtrend and has underperformed the overall industry. The stock is a shadow of itself after plunging from January trading levels of $352 a share, adjusted for dilution, to the current $2.13 a share level.

The company’s underperformance has already resulted in the delisting of the stock from the NASDAQ Capital market. The stock’s poor run has further been compounded by capital woes which has considerably affected investors’ confidence in the company’s long-term prospects.

However, if third quarter performance is anything to go by, then the company appears to be on the right track as it plots a bounce back.

“Despite the cash constraints, revenues for the third quarter of 2017 increased 75% over the prior year quarter, continuing the steady growth in our core European markets. This growth was supported by the establishment of ZE diagnostic-related (DRG) reimbursement for CHEMOSAT in Germany last year,” said CEO Jennifer K Simpson.

During the quarter, Delcath Systems, Inc. (OTCMKTS:DCTHD) successfully resolved its cash constraints and other restrictions related to its authorized shares limit. With the ability to issues shares restored, the company is now able to access the balance of restricted cash. The company is also able to explore opportunities for new equity financing for the execution of the Clinical Development Program and European commercialization.

Delcath Q3 Financial Results

Revenue for the three months ended September 30, 2017, came in at $0.7 million, representing 75% increase, from $0.4 million reported in 2016. Selling General and administrative expenses increased to $2.9 million from $2.4 million. Total Operating expenses in the quarter came in at $5.1 million, compared to $5 million the prior year

Delcath Systems, Inc. (OTCMKTS:DCTHD) posted a net loss of (-$12.6) million or (-$9.36) a share for the quarter compared to a net loss of (-$1) million or (-$230.99) a share for the corresponding quarter last year. Net loss for the first nine months of the year came in at (-$25.8) million up from a net loss of (-$9.5) million reported last year.

Delcath Systems, Inc. (OTCMKTS:DCTHD) exited the quarter with cash and cash equivalent of $2.5 million compared to $4.4 million as of December 31, 2016.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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