Delcath Systems, Inc. (NASDAQ:DCTH)
Shares of Delcath Systems, Inc. (NASDAQ:DCTH) doubled today on heavy volumes. DCTH shares closed at $0.099. The 30-day, daily average volume is listed at just over 73 million but today over 233 million shares traded hands. Typically, the doubling of a firm’s market capitalization would have been motivated by a major news item or company announcement that forecast increased revenues. A review of the major news sources and the company’s own website reveals no such news or announcement has been published. However, some stock news websites are postulating that DCTH shares may be entering an overbought condition.
Delcath Systems, Inc. (NASDAQ:DCTH) is a specialty pharmaceutical and medical device company in the oncology sector. Delcath’s proprietary product is Melphalan Hydrochloride. It is injected for use with the Delcath Hepatic Delivery System (Melphalan/HDS) and is designed to administer high dose chemotherapy to the liver, while controlling the systemic exposure to those agents. Delcath Systems, Inc. (NASDAQ:DCTH)’s principal focus is on the treatment of primary and metastatic liver cancers. In the United States, the Melphalan/HDS system is considered a combination drug and device product, and is regulated as a drug by the U.S. Food and Drug Administration (FDA). The FDA has not approved the sale or use of the Melphalan/HDS system. In Europe, Delcath has received approvals for their proprietary system to deliver and filter melphalan hydrochloride. This system, or device, is marketed under the trade name Delcath Hepatic CHEMOSAT® Delivery System for Melphalan (CHEMOSAT).
The financials of Delcath Systems, Inc. (NASDAQ:DCTH) are not a shareholder’s dream. While Delcath has had increasing revenues every year since 2013, they have yet to turn a profit. In 2013 the net income loss was $30.3 million and in 2016 that loss shrank to a loss of $17.9 million. Delcath Systems, Inc. (NASDAQ:DCTH) has a 52-week high/low difference that stands out. Itts 52-week low is a single penny, $0.01. Its 52-week high is $6.49.
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: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.