UPDATE: BTIG Starts Delcath Systems (DCTH) at Buy
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BTIG analyst Marie Thibault initiates coverage on Delcath Systems (NASDAQ: DCTH) with a Buy rating and a price target of $23.00.
The analyst comments "Delcath Systems (DCTH) is an interventional oncology company that has developed HEPZATO, a percutaneous hepatic perfusion system that we believe offers a safe, effective treatment for metastatic ocular melanoma (mOM). Currently, there is no one standard of care for mOM patients and even treated patients have a poor prognosis, with median overall survival of just 6-8 months. We anticipate a data read-out from the company's FOCUS trial in early 2021; this data is expected to support an FDA submission for approval of the HEPZATO system. Reflecting upon data from other studies and commercial use of the product (known as CHEMOSAT in Europe), we see a high likelihood of positive FOCUS data. While this data event and the FDA regulatory approval process to follow are binary catalysts, we think the lack of good options for these patients -- length of survival has not budged over the past few decades -- increases the chance of FDA approval. We view an investment in DCTH as higher risk than many alternatives in the MedTech sector, but also point to the lack of value being assigned to the potential for increased European adoption following strong data and the company's extensive indication pipeline. We initiate on DCTH with a Buy recommendation and a $23 PT based on a 4.5x EV/Sales multiple applied to our 2026 sales forecast, using an annual discount rate of 15% and fully diluted shares."
Shares of Delcath Systems closed at $16.91 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, New Coverage
Related EntitiesBTIG, FDA
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