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Strategic Growth Potential for Delcath Systems: Buy Rating Backed by CHOPIN Trial and Market Expansion

Strategic Growth Potential for Delcath Systems: Buy Rating Backed by CHOPIN Trial and Market Expansion

John Newman, an analyst from Canaccord Genuity, maintained the Buy rating on Delcath Systems (DCTHResearch Report). The associated price target remains the same with $21.00.

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John Newman’s rating is based on several strategic factors that suggest significant growth potential for Delcath Systems. Firstly, the upcoming CHOPIN trial results, expected in the third quarter of 2025, could enhance the usage of Hepzato in combination with checkpoint inhibitors for Uveal Melanoma, potentially increasing its efficacy where checkpoint therapy alone has had limited success. This trial presents minimal downside risk to current revenues, even if the results are not favorable.
Additionally, the anticipated price discount for Hepzato, effective in the third quarter of 2025, aims to expand market reach by qualifying for 340b programs and maintaining Medicare coverage, which could boost sales volumes despite a lower unit price. Furthermore, Delcath’s plans to expand Hepzato’s application to liver metastases in breast and colorectal cancer represent substantial revenue opportunities, with potential market sizes of approximately $1 billion and $2 billion, respectively. The company’s positive operating cash flow, which began in the first quarter of 2025, is expected to continue, supporting long-term financial health. These factors collectively underpin the Buy rating and a price target of $21.

Based on the recent corporate insider activity of 8 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of DCTH in relation to earlier this year.

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