Advaxis, Inc. (NASDAQ:ADXS) Stock Gaps Down Hard

Advaxis, Inc. (NASDAQ:ADXS)

Advaxis, Inc. (NASDAQ:ADXS) stock came under immense selling pressure as investors reacted to the company’s business update. The stock declined 19.68% as investors were rattled by a wider than expected net loss of (-$70.1) million.

Advaxis Stock Sell-Off

Tuesday’s sell-off saw Advaxis, Inc. (NASDAQ:ADXS) stock gap lower as it broke through a key support level to end the day at $5.48 a share. The stock has already recorded a new 52-week low as it continues to trade in a strong downtrend in a $5.40 – $7.40 trading range.

Advaxis, Inc. (NASDAQ:ADXS)
One month ADXS stock price chart

Advaxis, Inc. (NASDAQ:ADXS) sentiments on the Street have turned sour ever since Daniel J O’Connor resigned as CEO in June. The company is yet to appoint a permanent replacement – something that continues to spook investors. A wider than expected net loss is the latest headwind that continues raise concerns about its growth prospects.

The rate at which the company is burning cash is another point of concern. The company exited the third quarter with cash and cash equivalent of $89.4 million down from $115.3 million as of April 30, 2017. Chief Financial Officer, Sara Bonstein, has sought to quash investors’ concerns by reiterating they had a productive quarter even with a surge in net loss.

“The company had a productive third quarter while advancing the development of its core assets. There was increased spend in Q3 due to higher costs to support the regulatory filing of axalimogene filolisbac in Europe, and several one-time costs, which are not anticipated to recur,” Bonstein in a statement.

Growing Shareholder Value

In a bid to grow shareholder value, Actavis has embarked on a four franchise approach anchored in its LM technology. The platform is designed to effectively and safely target various cancers in multiple areas. To enhance the development of the platform the company plans to reprioritize programs for continued internal clinical development.

The growth strategy centers on four clear distinct franchises of HPV-associated cancers, prostate cancer, neoantigen therapy, and hotspot mutation therapy. Advaxis, Inc. (NASDAQ:ADXS) is preparing to file a marketing application submission with European regulators for axalimogene filolisbac a novel treatment for persistent or recurrent metastatic carcinoma of the cervix.

In addition, the company is collaborating with AstraZeneca plc. (ADR)(NYSE:AZN) on a Phase 2 combination trial with durvalumab in cervical and neck cancers.

“We continue to focus on building shareholder value and are committed to bringing clinically beneficial solutions to our patients and their families,” said Anthony Lombardo Interim CEO.

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.