Why TrovaGene Inc (NASDAQ:TROV) Reported Restructuring Plan?

TrovaGene Inc (NASDAQ:TROV)

TrovaGene Inc (NASDAQ:TROV), a molecular diagnostic firm, released its financial report for the fourth quarter and year closed December 31, 2016. The company also reported a restructuring plan that will support the firm’s expansion into segment of precision cancer therapeutics.

The update

Trovagene reported a license deal with Nerviano Medical Sciences that allows company’s exclusive international commercialization and development rights to PCM-075, which is an oral, investigative medicine and a highly-selective ATP competitive inhibitor of the PLK 1.  A phase I safety trial of PCM-075 was completed in people suffering with advanced metastatic disease. The company intends to advance PCM-075 initially in subjects with acute myeloid leukemia and appears to be initiating a clinical advancement plan this year.

Bill Welch, CEO of TrovaGene Inc (NASDAQ:TROV), reported that they are thrilled to report the implementation of their plan to vertically integrate ctDNA PCM know-how with precision cancer therapeutics by advancing medicines where their deep knowledge of tumor genomics may permit for effective targeting of cancer patients.

TrovaGene Inc (NASDAQ:TROV) projects the restructuring plan will reduce yearly pre-tax costs by almost $8 million per year excluding one-time separation expenses via the decline of almost 30 personnel and costs mainly linked to research, operations and clinical studies.  The company will sustain its CLIA/CAP-accredited lab for clinical services to pharma firms and for internal programs.

A corporate restructuring was required to support Trovagene’s precision cancer therapeutic prospects. They consider the changes to be in the best interest of all investors as they look to establish an industry pioneering precision medicine firm.

TrovaGene Inc (NASDAQ:TROV) recorded a net loss of $8.5 million as against a net loss of $10.2 million for Q3 2016, and a net loss of $7.4 million for Q4 2015.

Total operating expenses came at almost $9.9 million in Q4 2016, slightly down from $10 million in Q3 2016, and a jump from $7.5 million in Q4 2015. Net cash deployed in operating activities in 4Q2016 was $9 million, compared to $7 million in Q3 2016. This quarter-over-quarter jump can be attributed mainly to greater research and development expenses linked with advancement of a multigene panel, a record payment to Boreal Genomics and specific non-recurring administration costs.

As of December 2016, the company had short-term investments and cash/cash equivalents of almost $37.9 million. In the last trading session, the stock price of Trovagene gained more than 6% to close the day at $1.75.

Ticker Symbol TROV
Last Price a/o 3:21 PM EST  $1.75
Average Volume  245.21K
Market Cap (mlns)  $53.10M
Shares Outstanding (mlns) 30.34M
Share Float (mlns) 27.66M
Inside Ownership 0.80%
Short Float 8.07%
Short Interest Ratio 9.11
Quarterly Return -23.91%
YTD Return -16.67%
Year Return -65.95%

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: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

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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.

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