Why Financial Results for Celsion Corporation (NASDAQ:CLSN) Made No Waves

Celsion Corporation (NASDAQ:CLSN)

Celsion Corporation (NASDAQ:CLSN) is a nano-cap biotechnology firm based in Lawrenceville, NJ. Celsion develops cancer treatments. These treatments include directed chemotherapies, DNA-medicated immunotherapy, and RNA-based therapies.

This morning Celsion Corporation (NASDAQ:CLSN) released 2016 financial results. In general, they met expectations and CLSN shares are trading flat in response. Celsion reported a net loss of $22.1 million, or $0.85 per share, compared to a net loss of $22.5 million, or $1.03 per share, in 2015. Operating expenses were $21.1 million in 2016 compared to $21.3 million in 2015. This decrease was primarily due to lower general and administrative expenses and clinical supply costs offset by higher clinical development costs for the Phase 3 OPTIMA Study. Research and development (R&D) costs were constant at $14.6 million in 2016 and 2015.

Celsion Corporation (NASDAQ:CLSN) investors have not had it easy. CLSN shares are down 80% for the year and 4.6% YTD. Still, two analysts continue to rate CLSN shares as a “Strong Buy” and one rates the stock a “Buy”. This could be in anticipation of a successful result in their Phase 3 OPTIMA study which is designed to evaluate the efficacy of ThermoDox – their lead product candidate. ThermoDox is being used I conjunction with standardized RFA in patients with liver cancer. 550 patients in 75 global locations are participating. The primary endpoint is overall survival. The targeted outcome is a 33% increase in overall survival rates. Thermodox is also in a Phase 2 study for the treatment of recurrent chest wall breast cancer.

Celsion Pipeline:

Shareholder Landscape

Aside from the ever-present, expected biotech programmatical challenges, Celsion Corporation (NASDAQ:CLSN) continues to dilute shareholder equity which has propelled shares downward for years. On February 15, 2017 Celsion announced a public offering with expected gross proceeds of $5 million. That announcement sent shares tumbling over 30%. This has continued the trend to issue shares over the years. In 2011 the number of outstanding shares stood at 4.65 million. In the following years the number of outstanding shares grew to 7.73 million, 13.54 million, 18.47 million, and, in 2015, 21.81 million.

Still, traders are active in CLSN. The average daily volume is 2.41 million shares and yesterday over 6.2 million shares traded hands. Insiders are also buying up CLSN. Director Alberto Martinez Jr. purchased 45,000 shares of CLSN worth $9,450 in February. In October, Chairman, President, and CEO Michael Tardugno bought 10,000 shares of CLSN on the open market.

Ticker Symbol CLSN
Last Price a/o 2:53 PM EST  $                      1.53
Average Volume                2,410,000
Market Cap (mlns)  $                    11.29
Sales (mlns) $0.50
Shares Outstanding (mlns) 38.93
Share Float (mlns) 29.23
Shortable Yes
Optionable Yes
Inside Ownership 1.00%
Short Float 2.02%
Short Interest Ratio 0.25
Quarterly Return -56.39%
YTD Return -4.57%
Year Return -79.29%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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