Maxim Group Downgrades TrovaGene (TROV) to Hold

Maxim Group downgraded TrovaGene (NASDAQ: TROV) from Buy to Hold.

Analyst Jason Kolbert commented:

• Trovagene reported essentially burning just under $10M in the quarter and ending the year with $38M in cash. Our current model is focused on Trovagene the diagnostics company and we will need to re-evaluate the company given the new focus on developing diagnostic-based therapeutics. As such, for the moment we are lowering our rating to Hold while we evaluate the new strategic direction.
• Trovagene also announced a license agreement with Nerviano Medical Sciences (NMS Group), which grants Trovagene exclusive global development and commercialization rights to PCM-075, an oral, highly selective, adenosine triphosphate (ATP) competitive inhibitor of serine/threonine polo-like kinase 1 (PLK1) in development for patients with acute myeloid leukemia (AML). Under the agreement, Trovagene will develop and commercialize the drug in exchange for $2M upfront, and development and regulatory milestones to NMS Group. NMS currently manufactures the drug and Trovagene has the rights to manufacture bulk and finished goods.
• ctDNA platform has been taking time for adoption, and, as such, Trovagene is expanding in precision cancer medicine therapeutics.
• Trovagene will remain part diagnostics company, and multi-gene panels and urine tests will continue to be sold, and the CLIA/CAP-accredited lab will remain operational for clinical services for pharmaceuticals and internal programs, however, the focus has shifted to the therapeutics side. Head count has been reduced on the diagnostics side and will rise as they build the therapeutics side.

For an analyst ratings summary and ratings history on TrovaGene click here. For more ratings news on TrovaGene click here.

Shares of TrovaGene closed at $1.75 yesterday.

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