BioTuesdays

HCW starts Delcath Systems at buy; PT $25

Delcath-Systems-Inc

H.C. Wainwright initiated coverage of Delcath Systems (NASDAQ:DCTH) with a “buy” rating and 12-month price target of $25. The stock closed at $8.02 on Dec. 9.

Delcath is a clinical-stage interventional oncology company developing a repeatable perfusion system, HEPZATO, to treat metastatic liver cancer. 

The system is designed to isolate liver circulation, saturate it with high concentration of chemotherapy, and filter the blood before returning it to systemic circulation, writes analyst Swayampakula Ramakanth. 

HEPZATO, a percutaneous hepatic perfusion system, was successfully evaluated in a Phase 3 study, FOCUS, as a therapy for liver associated metastatic ocular melanoma (mOM). The system received a CE mark in Europe under the brand name, CHEMOSAT, in 2012 and has been used in more than 1,000 procedures to date, Mr. Ramakanth said. 

The company recently completed analysis of the FOCUS study and is planning to file an NDA in the first quarter of 2022, he said, adding that he expects HEPZATO to be in the U.S. market in the first quarter of 2023. 

“We believe with success in mOM, management could expand to metastatic colorectal cancer and cholangiocarcinoma,” he added.

At a current valuation of $60-million, Delcath is an “attractive opportunity for a long-term investor,” Mr. Ramakanth said.

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