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Jun 30, 2020

Delcath Q2 2020 Earnings Report

Delcath reported a net loss of $4.3 million and product revenue of $262 thousand.

Key Takeaways

Delcath Systems, Inc. announced financial results for the quarter ended June 30, 2020. The company completed a $22 million public offering and uplisted to the NASDAQ Capital Market. Product revenue was $262 thousand, and the net loss was $4.3 million.

Completed a $22 million public offering to fund the Phase 3 registration trial of Melphalan/HDS in liver-dominant metastatic ocular melanoma (mOM) and refiling of an NDA with the FDA.

Uplisted to the NASDAQ Capital Market.

Initiated pre-commercialization work for Melphalan/HDS in mOM.

Management is focused on delivering top-line results for the Phase 3 FOCUS trial by year-end 2020/early 2021.

Total Revenue
$379K
Previous year: $412K
-8.0%
EPS
-$1.9
Previous year: -$0.08
+2275.0%
Gross Profit
$211K
Previous year: $240K
-12.1%
Cash and Equivalents
$16M
Previous year: $352K
+4448.6%
Free Cash Flow
-$7.89M
Previous year: -$3.19M
+147.3%
Total Assets
$20.4M
Previous year: $5.64M
+262.7%

Delcath

Delcath

Forward Guidance

Delcath expects top-line results from the Phase 3 FOCUS trial by year-end 2020/early 2021 and plans to submit a New Drug Application (NDA) by mid-2021. They also intend to initiate additional clinical studies for Melphalan/HDS in liver-dominant orphan cancers.

Positive Outlook

  • Completion of Phase 3 FOCUS trial in metastatic ocular melanoma by year-end 2020/early 2021.
  • Potential FDA approval in the second half of 2021 for Melphalan/HDS as a treatment for mOM patients.
  • Initiation of additional studies in one or more liver-dominant metastatic indications.
  • Sufficient cash runway through multiple value inflection points.
  • The company expects to initiate at least one additional clinical development program of Melphalan/HDS in coming quarters.

Challenges Ahead

  • Covid-19 has affected clinical trials, including the Phase 3 FOCUS registration trial.
  • Restrictions to clinical sites for data entry and monitoring during the quarter.
  • Net loss of $4.3 million for the quarter ended June 30, 2020.
  • Reliance on cash resources and anticipated milestone payments to fund operating activities into mid-year 2021.
  • The company used $7.9 million of cash in operating activities during the three months ended June 30, 2020.