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Investing.com -- Delcath Systems (NASDAQ:DCTH) stock fell 8% after the company reported third-quarter revenue that missed expectations, overshadowing positive clinical trial data for its liver cancer treatment.
The interventional oncology company announced that its CHOPIN Phase 2 clinical trial met its primary endpoint, demonstrating significantly improved outcomes for patients with metastatic uveal melanoma when combining its HEPZATO KIT with immunotherapy drugs ipilimumab and nivolumab. The combination therapy showed 54.7% one-year progression-free survival compared to 15.8% for patients receiving HEPZATO alone.
Despite this clinical success, investors focused on Delcath’s preliminary third-quarter financial results, which showed total revenue of approximately $20.5 million, falling short of analyst expectations. The company also lowered its full-year 2025 revenue guidance to $83-85 million from the previous $93-96 million range.
Delcath attributed the revenue shortfall to Medicaid National Drug Rebate Agreement Program discounts and unexpected summer seasonality affecting new patient starts. The company still reported positive adjusted EBITDA of $5.3 million and operating cash flow of $4.8 million for the quarter.
"The CHOPIN trial clearly demonstrates that adding ipilimumab and nivolumab to PHP is both effective and tolerable. The efficacy results are impressive, especially when considering the treatment regime included only two PHP treatments," said Gerard Michel, CEO of Delcath Systems .
BTIG analyst Marie Thibault noted, "The Q3 miss and lowered 2025 guide may distract from what we see as favorable CHOPIN results."
The company ended the quarter with approximately $88.9 million in cash, cash equivalents, and short-term investments, with no debt.
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