Delcath Systems, Inc. (NASDAQ: DCTH) is having an incredibly strong start to the trading session today, and normally, that’s what I’m focusing on when I’m breaking these stories. However, the truth of the matter is that the Delcath story isn’t a today type of story. The truth of the matter is that when I first came across this company, I was intrigued, and at the end of the day, overwhelmingly impressed. We’ll get to why in a bit, but before we get to it, I’d like to thank my partners at Trade Ideas for being the first to alert me to the gains today. At the moment (9:47), DCTH is trading at $0.19 per share after a gain of $0.05 per share (37.26%) thus far today.
DCTH Is Tackling An Issue Near And Dear To My Heart
Delcath Systems is a company that’s focused in the oncology space. Ultimately, the company is just one of many in the fight to bring cancer to its knees, as cancer has brought so many people to theirs. This is a topic that is very near and dear to me, and for good reason. To date, I’ve lost 3 family members – my stepfather, my aunt, and my uncle – to various forms of cancer. So, when I see a company that’s doing something different in the oncology space, it immediately grabs my interest.
Delcath Is One Of Those Companies
DCTH isn’t your standard oncology company. No, they have pioneered something that no one else has, and that something is overwhelmingly promising. So, what is that something? Well, it’s CHEMOSAT®. CHEMOSAT is a platform that is designed for the administration of chemosaturation therapy to the liver.
The system delivers what is known as a chemotherapeutic agent (melphalan hydrochloride) directly to the liver. This is done through a procedure known as precutaneous hepatic perfusion, or simply, PHP. Ultimately, catheters are placed to isolate the liver’s blood flow from the rest of the body and proprietary filters reduce the concentration of the chemotherapeutic agent after it leaves the target organ. As a result, doctors now have the ability to administer concentrated doses of a chemotherapeutic agent while limiting toxicities associated with chemotherapy to manageable levels.
OK, so without all of the jargon there, I’ll give it to you straight. In the past, if you were a cancer patient and you received chemotherapy, that chemotherapy would essentially flow through your entire body, causing severe complications in the process. Trust me, I’ve watched it, it is no fun! However, DCTH created a way for the target organ, in this particular case, the liver, to be isolated. As a result, the chemotherapy is only given to that particular organ through a minimally invasive procedure. This means that if DCTH can bring this thing to the market in the United States, those suffering with liver cancer will soon have an option for treatment that causes less sickness and is likely far more effective.
CHEMOSAT Is Already Available
While DCTH is working hard to make CHEMOSAT available here in the United States, the company has already received approval in Europe, and the treatment is already saving lives. Yes, I said it, Delcath Systems is saving lives here! Don’t believe me? Just watch the video below!
Now We Get To The Interesting Part
So, if DCTH has come up with a life-saving treatment that’s already approved in Europe and working its way to approval in the United States, why is it that the stock is trading at such a low value? The answer is simple. Ultimately, Delcath Systems has repeatedly been the victim of short-side attacks on their stock. Every time it seems as though the valuation is finding a leg up, shorts attack the stock, knocking it back down.
However, it’s my opinion that this can’t last forever. At the end of the day, CHEMOSAT is an incredible, life-saving treatment. As much as the bears want to keep the stock down for their own personal gain, they are harming the medical community in the process. Nonetheless, considering the approval in Europe and strong results we’ve seen from state-side clinical trials, it only makes sense that this treatment will find its way to approval in the United States, which will likely send DCTH flying when it happens.
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The Bottom Line
The bottom line here is that while the shorts continue to attack DCTH at every given opportunity, these attacks simply cannot last forever. At the end of the day, the company has created an incredible innovation in the oncology space and deserves not only recognition, but a stronger valuation for their work. I’ll leave it at that… want to debate it? There’s a comment box below!
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