Why We Bought Delcath

| About: Delcath Systems, (DCTH)

Delcath Systems (NASDAQ:DCTH) is a biotech stock that does pose some risk, but with Phase III results just around the corner, we couldn’t help but take a look and ended up buying. They develop and manufacture devices to give high doses of chemotherapy and other cancer therapies directly to diseased organs or areas of the body.

Their PHP system (which is their leading candidate product) is in phase III clinical trials. This system allows physicians to deliver higher doses of chemotherapy directly to the liver at 100x as much as IV doses. They offer a minimally invasive approach to targeted areas that causes much less side effects than current chemo treatments. More importantly, the procedure can be repeated for follow up treatment without the high risk to patients associated with repeating other cancer therapies.

We’re anticipating the release of Phase III data in April for their leading candidate. Positive results or those with solid deadlines may cause the stock price to soar.

Other good news for the future of Delcath is they are also developing the technology to treat other organs or areas of the body that are affected by cancer, they have an experienced management team with proven similar experience, DCTH’s orphan drug status, and manufacturing already being put in place are all positive signs.

Disclosure: Long DCTH stock