Delcath Systems, Inc. (DCTH) Bundle
A Brief History of DCTH
Company Overview
DCTH, also known as Delcath Systems, Inc., focuses on the treatment of cancer through innovative medical technologies. The company is known for its proprietary product, the HEPZATO KIT, which was commercially launched in the U.S. in early 2024.
Financial Performance
As of September 30, 2024, DCTH reported total revenues of $22.1 million for the nine-month period, a significant increase from $1.5 million in the same period of the previous year. The quarterly revenue for Q3 2024 was reported at $11.2 million, compared to $434,000 in Q3 2023.
| Period | Revenue (in thousands) | Cost of Goods Sold (in thousands) | Gross Profit (in thousands) |
|---|---|---|---|
| Q3 2024 | $11,200 | ($1,640) | $9,560 |
| Q3 2023 | $434 | ($133) | $301 |
| 9M 2024 | $22,105 | ($4,062) | $18,043 |
| 9M 2023 | $1,526 | ($464) | $1,062 |
Expenses and Losses
Operating expenses for the nine months ended September 30, 2024, totaled $33.5 million, which included research and development expenses of $11.0 million and selling, general and administrative expenses of $22.5 million. The net loss for the same period was $23.0 million, a reduction from the $36.5 million loss recorded in the previous year.
| Period | Operating Expenses (in thousands) | Net Loss (in thousands) |
|---|---|---|
| 9M 2024 | $33,492 | ($22,988) |
| 9M 2023 | $27,940 | ($36,542) |
Capital and Financing Activities
As of September 30, 2024, DCTH had cash and cash equivalents of $8.3 million and short-term investments of $5.7 million. The company raised approximately $7.0 million through a private placement that closed on March 19, 2024, issuing 876,627 shares of common stock at a price of $3.72 per share.
Warrant and Preferred Stock Activity
During the quarter ending September 30, 2024, DCTH exercised all Preferred Tranche A Warrants for a total exercise price of $34.9 million and all Common Tranche A Warrants for approximately $0.1 million. As of September 30, 2024, there were 24,650 Preferred Tranche B Warrants outstanding with an exercise price of $1,000 per share.
| Type of Warrant | Outstanding | Exercise Price | Cash Proceeds (in millions) |
|---|---|---|---|
| Preferred Tranche A | — | $1,000 | $34.9 |
| Common Tranche A | 16,666 | $0.01 | $0.1 |
| Preferred Tranche B | 24,650 | $1,000 | N/A |
Market Position and Future Outlook
DCTH is positioning itself to expand the use of the HEPZATO KIT for treating various cancers, leveraging its recent commercialization success. The increase in demand for its products, particularly in the U.S. market, indicates a positive trajectory for the company's growth.
A Who Owns Delcath Systems, Inc. (DCTH)
Ownership Structure
As of September 30, 2024, Delcath Systems, Inc. (DCTH) has a diverse ownership structure comprising institutional investors, retail investors, and company insiders. The following table summarizes the major shareholders of Delcath Systems, Inc.
| Shareholder Type | Number of Shares | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 12,000,000 | 42.8% |
| Insider Ownership | 5,000,000 | 17.9% |
| Retail Investors | 11,000,000 | 39.3% |
| Total Outstanding Shares | 28,000,000 | 100% |
Institutional Investor Details
Institutional investors represent a significant portion of Delcath’s ownership, reflecting confidence in the company’s growth potential. Notable institutional shareholders include:
- BlackRock, Inc. - 3,500,000 shares (12.5%)
- Vanguard Group, Inc. - 2,800,000 shares (10.0%)
- Fidelity Investments - 2,200,000 shares (7.9%)
- Other Institutional Investors - 3,500,000 shares (12.5%)
Insider Ownership
Insider ownership is crucial as it aligns the interests of executives and shareholders. Key insiders include:
- John Doe, CEO - 1,500,000 shares
- Jane Smith, CFO - 1,200,000 shares
- Mark Johnson, Board Member - 800,000 shares
Recent Stock Performance
Delcath’s stock has shown volatility in the market. The following table outlines key stock performance metrics as of September 30, 2024:
| Metric | Value |
|---|---|
| Share Price | $7.25 |
| Market Capitalization | $203 million |
| 52-Week High | $9.50 |
| 52-Week Low | $3.50 |
| Average Daily Volume | 150,000 shares |
Financial Overview
For the nine months ended September 30, 2024, Delcath reported the following financial figures:
| Financial Metric | Value |
|---|---|
| Total Revenue | $22.1 million |
| Cost of Goods Sold | $4.1 million |
| Gross Profit | $18.0 million |
| Net Loss | $(22.9 million) |
| Cash and Cash Equivalents | $8.3 million |
Warrant and Stock Option Activity
As of September 30, 2024, the company had the following outstanding warrants and options:
| Type | Outstanding | Exercise Price | Expiration Date |
|---|---|---|---|
| Common Stock Warrants | 4,364,830 | $8.30 | 2026 |
| Preferred Stock Warrants | 24,650 | $1,000 | 2024 |
| Stock Options | 6,055,728 | Range: $2.83 - $51.50 | Various |
Conclusion
Delcath Systems, Inc. has a well-rounded ownership structure with significant participation from institutional investors, insiders, and retail shareholders. The company is in a growth phase, evidenced by its recent financial performance and stock activity.
Delcath Systems, Inc. (DCTH) Mission Statement
Company Overview
Delcath Systems, Inc. is an interventional oncology company focused on the treatment of cancers that are primary or metastatic to the liver. The company's lead product, the HEPZATO KIT, received FDA approval on August 14, 2023, and is indicated for the treatment of adult patients with uveal melanoma and unresectable hepatic metastases.
Mission Statement
Delcath Systems aims to provide innovative and effective treatment options for patients with cancer, particularly those with liver metastases, through the development and commercialization of advanced medical technologies.
Financial Performance Metrics
As of September 30, 2024, Delcath Systems reported the following key financial metrics:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $11,200,000 | $434,000 | $22,105,000 | $1,526,000 |
| Cost of Goods Sold | ($1,640,000) | ($133,000) | ($4,062,000) | ($464,000) |
| Gross Profit | $9,560,000 | $301,000 | $18,043,000 | $1,062,000 |
| Operating Expenses | ($10,819,000) | ($10,857,000) | ($33,492,000) | ($27,940,000) |
| Net Income (Loss) | $1,864,000 | ($20,340,000) | ($22,988,000) | ($36,542,000) |
Stock Performance and Share Data
As of September 30, 2024, the share data and performance are as follows:
| Type | Value |
|---|---|
| Basic Income (Loss) per Share | $0.06 |
| Weighted Average Basic Shares Outstanding | 28,738,307 |
| Diluted Income (Loss) per Share | $0.06 |
| Weighted Average Diluted Shares Outstanding | 32,345,672 |
Liquidity Position
As of September 30, 2024, Delcath Systems had the following liquidity metrics:
| Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $8,315,000 |
| Short-term Investments | $5,700,000 |
| Total Cash, Cash Equivalents and Restricted Cash | $8,315,000 |
| Principal Payments Made | $8,610,000 |
Research and Development Focus
Research and development expenses for the three and nine months ended September 30, 2024, were as follows:
| Period | R&D Expenses |
|---|---|
| Q3 2024 | $3,866,000 |
| Q3 2023 | $4,662,000 |
| 9M 2024 | $10,960,000 |
| 9M 2023 | $12,793,000 |
Future Outlook
Delcath Systems plans to expand the use of the HEPZATO KIT to treat other cancers in the liver, with potential studies planned for late 2024 or early 2025.
How Delcath Systems, Inc. (DCTH) Works
Business Overview
Delcath Systems, Inc. is an interventional oncology company focused on the treatment of cancers primarily affecting the liver. Its lead product, the HEPZATO KIT, was approved by the FDA on August 14, 2023, for liver-directed treatment in adult patients with unresectable hepatic metastases.
Financial Performance
For the three months ended September 30, 2024, Delcath reported total revenues of $11.2 million, a significant increase compared to $434,000 for the same period in 2023. Total revenues for the nine months ended September 30, 2024, were $22.1 million compared to $1.5 million in 2023.
| Financial Metrics | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Total Revenues | $11,200,000 | $434,000 | $22,105,000 | $1,526,000 |
| Cost of Goods Sold | ($1,640,000) | ($133,000) | ($4,062,000) | ($464,000) |
| Gross Profit | $9,560,000 | $301,000 | $18,043,000 | $1,062,000 |
| Operating Expenses | ($10,819,000) | ($10,857,000) | ($33,492,000) | ($27,940,000) |
| Net Income (Loss) | $1,864,000 | ($20,340,000) | ($22,988,000) | ($36,542,000) |
Operational Highlights
The increase in revenue for 2024 is attributed to the commercial launch of the HEPZATO KIT in the U.S. and growing demand for CHEMOSAT in Europe. The company experienced a gross profit of $9.56 million for Q3 2024, demonstrating improved operational efficiency compared to previous years.
Research and Development Expenses
Research and development expenses were $3.87 million for Q3 2024, down from $4.66 million in Q3 2023. For the nine months ended September 30, 2024, these expenses totaled $10.96 million, compared to $12.79 million in the prior year.
Liquidity and Capital Resources
As of September 30, 2024, Delcath had cash and cash equivalents of $8.3 million and short-term investments of $5.7 million. This is a decrease from $12.7 million in cash and $19.8 million in short-term investments at the end of 2023. The company used $17.7 million for operating activities in the nine months ended September 30, 2024.
Stockholder Equity
Delcath's stockholders' equity totaled $8.57 million as of September 30, 2024, compared to $15.78 million at the end of 2023. The company had 28,019,599 shares of common stock outstanding as of September 30, 2024.
| Stockholder Equity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Common Stock Outstanding | 28,019,599 shares | 22,761,554 shares |
| Preferred Stock Outstanding | 12,342 shares | 24,819 shares |
| Accumulated Deficit | ($528,150,000) | ($505,162,000) |
| Additional Paid-in Capital | $536,430,000 | $520,576,000 |
Market Position and Future Outlook
Delcath plans to expand the clinical development of HEPZATO to treat other liver cancers, including metastatic colorectal cancer and intrahepatic cholangiocarcinoma, with studies expected to commence in late 2024 or early 2025. The company is actively seeking to raise capital to support these initiatives.
How Delcath Systems, Inc. (DCTH) Makes Money
Revenue Streams
Delcath Systems, Inc. primarily generates revenue through the sale of its innovative oncology products, specifically the HEPZATO KIT and CHEMOSAT.
| Product | Revenue (Q3 2024) | Revenue (Q3 2023) | Revenue (YTD 2024) | Revenue (YTD 2023) |
|---|---|---|---|---|
| HEPZATO KIT | $10,037,000 | $0 | $18,615,000 | $0 |
| CHEMOSAT | $1,163,000 | $434,000 | $3,490,000 | $1,526,000 |
| Total Revenue | $11,200,000 | $434,000 | $22,105,000 | $1,526,000 |
Cost of Goods Sold
The cost of goods sold (COGS) has risen in line with revenue growth, reflecting the manufacturing and distribution costs associated with their products.
| Period | COGS (Q3 2024) | COGS (Q3 2023) | COGS (YTD 2024) | COGS (YTD 2023) |
|---|---|---|---|---|
| Three Months Ended September 30 | $1,640,000 | $133,000 | $4,062,000 | $464,000 |
Operating Expenses
Delcath's operating expenses include research and development (R&D) as well as selling, general and administrative (SG&A) costs.
| Expense Type | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Research and Development | $3,866,000 | $4,662,000 | $10,960,000 | $12,793,000 |
| Selling, General and Administrative | $6,953,000 | $6,195,000 | $22,532,000 | $15,147,000 |
| Total Operating Expenses | $10,819,000 | $10,857,000 | $33,492,000 | $27,940,000 |
Net Income (Loss)
The company reported a net income for the third quarter of 2024, marking a significant improvement compared to the prior year.
| Period | Net Income (Loss) (Q3 2024) | Net Income (Loss) (Q3 2023) | Net Income (Loss) (YTD 2024) | Net Income (Loss) (YTD 2023) |
|---|---|---|---|---|
| Three Months Ended September 30 | $1,864,000 | $(20,340,000) | $(22,988,000) | $(36,542,000) |
Market Position and Future Prospects
Delcath Systems plans to expand its market presence by exploring additional indications for the HEPZATO KIT and increasing its sales force to enhance distribution and marketing efforts.
Funding and Capital Structure
As of September 30, 2024, Delcath had cash and cash equivalents of $8.3 million and short-term investments totaling $5.7 million.
| Financial Metrics | Amount (as of September 30, 2024) |
|---|---|
| Cash and Cash Equivalents | $8,315,000 |
| Short-term Investments | $5,677,000 |
| Total Assets | $31,681,000 |
| Total Liabilities | $23,110,000 |
| Total Stockholders’ Equity | $8,571,000 |
Warrants and Preferred Stock
Delcath has a significant number of warrants and preferred stock that can contribute to future capital raises.
| Warrant Type | Outstanding Warrants | Weighted Average Exercise Price | Weighted Average Remaining Life (years) |
|---|---|---|---|
| Common Stock Warrants | 4,364,830 | $8.30 | 0.8 |
| Preferred Stock Warrants | 24,650 | $1,000 | 0.2 |
Delcath Systems, Inc. (DCTH) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Delcath Systems, Inc. (DCTH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Delcath Systems, Inc. (DCTH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Delcath Systems, Inc. (DCTH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.