Buy Aptevo Therapeutics Before Their Q2 Results

Summary

• Investors might want to pay attention to Aptevo Therapeutics over the next several weeks before the company's Q2 results.
• There has been a lot of insider buying, something rare for a biotech stock, and the technicals are also getting better.
• The main thing to watch from the company's upcoming results will be IXINITY revenue, which will determine if shares prove to be a never expiring option on the company's pipeline.

While there is not much in terms of headline news for Aptevo Therapeutics (NASDAQ:APVO) as of late, there are many things happening "under the hood" that might warrant investor's attention. Because depending on how things proceed for the company, the profits to be had for investors might be extraordinary.

Αs per the previous quarter, revenue for the company's Hemophilia B drug IXINITY increased by 73% Y/Y to $7M. This is very important for 2 reasons.

First of all the market was modeling $6M in revenue, which means the adoption of the drug by the Hemophilia B community is accelerating.

The second is, depending on how IXINITY revenues do in the future, it could mean the difference between the company breaking even or not. And if the company breaks even as a result of IXINITY revenue, this will also mean investors will have a never expiring option on the company's pipeline that could be worth billions in the future.

Increasing IXINITY adoption

In order to increase IXINITY adoption the company launched a new larger 3000 IU vial size recently. This had been announced for a while, so it was no surprise. While I expect this bigger vial to increase IXINITY revenue, I do not expect by a lot. But any revenue increase puts the company closer to break-even.

The company has also announced it intends to commence a confirmatory Phase 4 study of IXINITY in pediatric patients, anticipated around Q3 2019.

Please note that pediatric patients under 12 represent 33% of the total addressable market for IXINITY. Today this revenue is not captured, thus revenue could potentially increase significantly in the future.

In addition to the above 2 initiatives, the company is also evaluating opportunities to license and partner distribution rights for IXINITY in ex-U.S. markets. The company has pre-existing relationships with various international

Analyst’s Disclosure:I am/we are long APVO. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.