Delcath Systems (DCTH):
Today I am going to do a quick rundown of a possible share price target for Delcath Systems (DCTH). For this analysis I will be giving the company the benefit of the doubt and using their topline revenue estimates for their technology.
First a little bit about Delcath’s PHP technology. 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.
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If you include revenues from Canada, Asia, Europe … it’s a 60 dollar stock.
Thanks for the article.
Besides ROW revenues I imagine this will garner significant off label use in Primary LC (HCC).
I’ve seen estimates that the primary LC market in the US is over 5 billion. Futhermore that the US percentage of LC is only 10% of global LC. Implying a 50 billion annual worldwide market for LC.
Thoughts on these numbers?
The CEO was recently interviewed on TheStreet.com and mentioned that treatments would cost approx $20K per session – http://www.thestreet.com/_yahoo/video/10769908/news-you-need.html?cm_ven=YAHOOV&cm_cat=FREE&cm_ite=NA&s=1#87916286001
What does on-label vs off-label mean?
On-label means sales are derived from product usage that was approved by FDA; Off-label means the sales are coming from usage in indications/cancers/areas for which the FDA has not approved the product
Onco investor is right. I would also like to add in that in the U.S. once the FDA approves a drug a Docotr is allowed to use his discretion when prescribing it to a patient.