Delcath Systems: Q1 Earnings Show A Growth Spurt And Switch To Execution

(14min)

Summary

  • Delcath's commercial execution post-HEPZATO launch has driven impressive revenue growth, positive cash flow, and a shift from speculative to established biotech.
  • Q1 earnings beat expectations with 530% revenue growth, positive EBITDA, and net income, validating the company's scalability and operational progress.
  • Growth drivers include expanding U.S. treatment centers, pipeline development for new indications, and commercial initiatives, though risks remain around execution and clinical milestones.
  • I am raising my conviction level and buy/sell targets, seeing DCTH as undervalued with significant long-term upside, but will wait for a pullback to accumulate more shares.
  • Looking for a helping hand in the market? Members of Compounding Healthcare get exclusive ideas and guidance to navigate any climate. Learn More »

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It has been roughly six months since my last article covering Delcath Systems (DCTH), where I went over the company’s Q3 earnings and growth trends. Since then, the ticker is up over 60% as

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This article was written by

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Biologics is a full-time healthcare investor who developed a passion for biotech and life saving therapies after working in the medical field for years. His trade focus is around innovative companies developing breakthrough therapies and/or pharmaceuticals with catalysts for potential acquisitions.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of DCTH either through stock ownership, options, or other derivatives. 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.

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