Delcath Systems (DCTH) PT Raised to $29 at H.C. Wainwright

H.C. Wainwright analyst Swayampakula Ramakanth raised the price target on Delcath Systems (NASDAQ: DCTH) to $29.00 (from $24.00) while maintaining a Buy rating.

The analyst comments "Medicaid drug rebate program to aid in sustainable growth. On May 22, Delcath announced its intention to enter into a Medicaid National Drug Rebate (NDRA) Agreement. We believe this strategic move is prudent given that it could not only aid in accessing a larger patient base but also help in achieving sustainable growth. The NDRA was created by Congress in 1990 ensuring drug manufacturers access to all patients covered under the Medicaid programs of all 50 states and District of Columbia as well Medicare Advantage programs in return for a rebate. According to management, by entering into the NDRA, HEPZATO kit would be made available to all Medicaid and Medicare Advantage programs increasing their access considerably. It is believed that certain hospitals are currently not adopting HEPZATO kit because of their patient profile and this strategic move could allow such hospitals to offer HEPZATO going forward. Management has begun the process of entering into NDRA and expect to become effective from 3Q25. We do not have any insight into the specifics of rebate that Delcath would offer under NDRA, however the statutory rebate any drug producer has to offer is 23.1%. We maintain our Buy rating on DCTH and increase our 12-month price target to $29 from $24 per diluted share."

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