Delcath Systems Under StockCall Microscope: Will This Drug Delivery System's
Stocks Rebound This Year?
LONDON, January 30, 2013
LONDON, January 30, 2013 /PRNewswire/ --
The pharmaceutical sector is a cost intensive sector and its R&D expenses are
formidable. However, despite the high costs involved, there are a large number
of small companies trying to innovate in this field. While, this is good news
for patients, the investors are generally left high and dry until these
companies receive requisite regulatory approvals for their products. Point in
case is Delcath Systems Inc. (NASDAQ: DCTH) which is waiting for limited
marketing approval for its chemotherapy drug delivery system Chemostat. The
StockCall review of Delcath Systems provides a wide-ranging technical analysis
about the company. Sign up today and read the free report at
Delcath Seeks Limited Marketing Approval for Chemostat
Delcath Systems' fortunes hinge on its cancer drug delivery systems. Its
Chemostat system is designed for administering chemotherapy for liver cancer.
The product was sent to the FDA for approval in August, 2012. However, its
application process has been fraught with obstacles. It was denied
preferential track and later the company itself decided to seek more limited
marketing approval for the system. While the FDA decision is expected by June
of this year, the prospects do not look very promising. The system was earlier
denied approval in 2010, but it is already approved in Europe. Register today
to access the free report on Delcath Systems at
Taking the best case scenario, the company expects to start marketing the new
system during the fourth quarter of this year. As per its revised application,
the system will be marketed for ocular melanoma only.
Delcath - Strategic Step and Limited Upside
Delcath is also augmenting its financial position. The company recently inked
a deal with Terrapin Opportunity LP. Under this deal, Terrapin agreed to
acquire up to $35 million worth of company stock within the next two years.
The arrangement will provide Delcath with financial flexibility.
Delcath stock has been in free fall for the past year and the trend is likely
to continue. With the company looking for limited approval for Chemostat, the
chances of stock going up have also been considerably muted. Even in the most
optimistic scenario of Chemostat getting the FDA approval, the upside to the
stock is rather limited.
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