Delcath Systems, Inc. (NASDAQ:DCTH)
Delcath Systems, Inc. (NASDAQ:DCTH) continues to edge higher as it builds on a momentum that began early in the month. The stock was up by 36.76% in Wednesday’s trading session as investors reacted to a stellar second quarter, where reported revenues were up 20% year-over-year. The company has also announced plans to carry out a reverse stock split as it looks to raise funds through the issuance of stock to finance operations.
Momentum continues to build up around Delcath Systems, Inc. (NASDAQ:DCTH) awaiting to see if the stock will rally. Shares traded have almost doubled to highs of 122 million. However, the stock has underperformed the overall industry and is down from highs of $3 a share.
Reports that Medizinische Hochshule Hannover is using Delcath Systems, Inc. (NASDAQ:DCTH) chemosaturation for the treatment of liver cancer appears to be fuelling renewed investor interest in the stock. The German medical facility has reportedly used innovative minimally invasive treatment in 100 patients.
The life-saving cancer treatment is currently approved in Europe as Delcath Systems, Inc. (NASDAQ:DCTH) continues to work on multiple clinical trials in pursuit of approval in the U.S. Approval in the U.S would be a milestone achievement, which could push the stock even higher in the charts.
Europe Sales Push
A 20% increase in second quarter revenue to highs of $0.6 million underscored growing demand for the company’s products in key markets. Delcath Systems, Inc. (NASDAQ:DCTH) attributes the increase to the establishment of ZE diagnostic reimbursement for Chemosat in Germany. The company plans to leverage the Positive reimbursement support in pursuit of market access in other countries such as the U.K and the Netherlands.
“During the first half of 2017 we continued to advance our clinical development programs in ocular melanoma liver metastases (OM) and intrahepatic cholangiocarcinoma (ICC), while making steady progress with the ongoing commercialization of CHEMOSAT in Europe,” said Jennifer K. Simpson, Delcath Systems, Inc. (NASDAQ:DCTH) CEO.
Separately, Delcath Systems, Inc. (NASDAQ:DCTH) has confirmed plans to carry out a reverse stock split having reached the maximum amount of authorized shares of common stock. The company plans to use the split to access $11.8 million of cash currently in restricted accounts associated with convertible notes issued last year. The split should also allow the company to regain compliance with the NASDAQ capital markets listing requirements.
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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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.