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QUEENSBURY, N.Y. - Delcath Systems, Inc. (NASDAQ:DCTH), a company specializing in interventional oncology treatments for liver cancers, has granted equity awards to six new employees as part of their compensation. The awards are in line with the inducement provisions of Nasdaq Listing Rule 5635(c)(4). According to InvestingPro data, the company’s stock has delivered an impressive 224% return over the past year, with a strong financial health score rated as "GOOD" by InvestingPro’s comprehensive analysis system.
The equity inducement, approved by the Compensation Committee on February 28, 2025, involves the option to purchase a total of 264,000 shares of Delcath’s common stock. These options carry an exercise price of $14.17 each, equivalent to the stock’s closing price on the grant date. The vesting schedule for the options is set to begin one year from the grant date, with one-third of the options vesting at that time. The remaining options will vest monthly over the subsequent two years, contingent upon the employees’ continued service with the company. Analysts tracked by InvestingPro maintain a strong bullish stance on the stock, with price targets ranging from $21 to $25.
Delcath’s inducement plan, which falls under the 2023 Inducement Plan, is designed to attract and retain top talent by aligning their interests with those of the company and its shareholders. The plan stipulates that the options have a ten-year term, providing long-term incentives for the new hires. The company maintains a strong liquidity position with a current ratio of 12.01, indicating robust financial flexibility in meeting its short-term obligations.
The company is known for its proprietary products, including the HEPZATO KIT™ and CHEMOSAT® Hepatic Delivery System for Melphalan, which are used in percutaneous hepatic perfusion (PHP) procedures to deliver high-dose chemotherapy directly to the liver. This method aims to maximize the treatment’s impact on liver tumors while minimizing systemic side effects. The company has demonstrated remarkable growth, with revenue surging by over 1,700% in the last twelve months. For deeper insights into Delcath’s financial performance and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.
In the US, the HEPZATO KIT is approved by the FDA as a drug-device combination for treating certain types of metastatic uveal melanoma with liver involvement. In Europe, the CHEMOSAT system is regulated as a Class III medical device and has been utilized in various liver cancer treatments at major medical centers.
This announcement is based on a press release statement from Delcath Systems, Inc.
In other recent news, Delcath Systems reported its fourth-quarter 2024 financial results, revealing a revenue of $15.1 million, which exceeded analyst forecasts of $13.62 million. However, the company posted an earnings per share (EPS) of -$0.11, falling short of the anticipated $0, which raised concerns among investors. Delcath’s Hepzato product contributed significantly to the revenue, with sales reaching $13.7 million, while Chemosat added $1.4 million. The company achieved an impressive gross margin of 86% and reported its first positive adjusted EBITDA of $4.6 million for the quarter. Analysts from H.C. Wainwright and BTIG have shown confidence in Delcath’s growth prospects, with H.C. Wainwright raising the stock price target to $24 and BTIG to $22, both maintaining a Buy rating. The expansion of Delcath’s treatment centers continues, with 16 centers currently active and plans to reach 30 by the end of 2025. Internationally, Delcath anticipates steady growth in Europe, aiming for financial breakeven, while also planning to expand its sales regions domestically. These developments underscore Delcath’s strategic efforts to broaden its market presence and enhance its financial performance.
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