Delcath Systems (DCTH) and ASCO:
So I have gotten a lot of email’s asking about Delcath’s PHP system for liver cancer patients and with the upcoming ASCO meeting I have decided to do an overview of what kind of results I am looking for. But first, let’s go through the technology to see what all the hype is about.
Delcath has done what a lot of doctors have been trying to do for a very long time. In a nutshell, Delcaths PHP technology (percutaneous hepatic perfusion) allows the doctors to more directly deliver powerful cancer fighting drugs directly to an isolated body part. In this case that body part is the liver. A long known problem with cancer drugs is that they damage other parts of a patient’s body, for example, the drug doxorubicin (and other anthracyclines) can only be given so many times to a patient in his or her lifetime before it damages their hearts. This can cause problems for patients who don’t respond well to treatment and need more doses, because eventually they may reach their maximum lifetime dosage and no longer be able to take the drugs.
cont’d on next page
Twitter
Very well written, simply put, nice job!
What I don’t think readers get is the complexity involved with placing the catheters & administering the chemo agent. DCTH wants to say this is a minimally invasive procedure which is true, but I’d have to classify it as a major procedure. I can’t imagine the number of people needed for a procedure; anesthesia, surgeons, fluro, perfusionist, etc. OR time, overnight hospitalization. The least expensive thing will be the chemo agent.
I think its a great idea & it will work, but how many procedures will really be performed on an annual basis should be considered.
I don’t disagree with you that it is a major surgery, but we are talking about a cancer where liver transplant is an option and in my opinion sticking a catherter in your leg and neck is very MINOR compared to replacing an entire liver. I think where there is demand for a procedure there will be plenty of supply, the surgery is much more moderate than many other cancer surgeries that I have seen. In fact, I would say that this procedure is probably a lot less costly than radiating an entire patients immune system. This is just my opinion, but also you have to understand that denreon is going to pricing their Provenge vaccine for $93,000 and are going to get that amount from Medicare as well. I think this procedure is very moderate compared to what we are currently doing. Yes, it sounds like a very rudiment procedure, but hey its working and that’s all that really matters. Anethesia is not really a hinderance neither is overnight hospitilization in my opinion. Those are the costs of doing business, if they put up home-run results at ASCO then I can see this company filing an NDA very soon.
The hedge funds are manipulating like usual to get the little retail investors shares at a cheap price, they did this exact thing on the DNDN stock. These funds have so much clout that they can do this and end up owing the company.
I am as PhD scientist, Harvard educated, who hasd met with many MDs from MD Anderson Cancer Clinic about metastatic cancers, especially of the liver, bile duct and gall bladder. In my opinion, this is a terrific step forward. The procedure can be done at major hospitals and centers in the USA and overseas. Results of Phase 3 will be reported at the prestigious ASCO Conference week of June 4 by James Pingpank. MD, section head at NIH/NIC and of U Pittsburg. This stock in my opinion is headed much higher.
i am long june 15 calls 1.20 let’s see next DNDN is in making
Has there been any indication of the cost of this procedure assuming it is approved? Is that XXX number the basis for the $550 mil mkt cap?
I will get a price/market share estimate up in a day or so. Keep in mind that Dendreon charges $93,000 for treatment of prostate cancer.
Cost is $20,000/procedure – so less than about 1/5 of Dendreon’s Provenge. Potential global revenues several billion US dollars.
What exactly are they charging $20k for – their custom catheters? I don’t understand their pricing strategy.
Future competitors to this system, could it be supplanted in a couple years?
Your allowed to patent procedures in the U.S. It is called patent law and it is what encourages innovation, they can patent the procedure if they want to, covidien has done it several times
Future competitors are precluded for seven years due to orphan drug status issued by FDA.
You are right, I forgot to mention that.
Based on the 100 plus centers doing liver transplants here and overseas and considering the reporter shortage of donors, I would think $20,000 a very reasonable fee. I would even think it could be higher and still be a popular alternative.
It is very very cheap in my opinion, more on this tomorrow. i will have a very very in depth article on this.
$20k per kit (include medication and catheter, not 20k per full treatment). Each patient requires 2 to 4 kits (i.e. 2 to 4 procedure). 1 kit per procedure.
Anyone come up with a per share estimate give the $20k per treatment?