Will Delcath Systems, Inc (NASDAQ:DCTH)’s Strategic Re-organization Bring It Back On Track?
Delcath Systems, Inc (NASDAQ:DCTH) announced that it is in efforts to increase its operational efficiencies. The company said that under a strategic reorganization, it has cut out 21 positions which amounts to almost 33% of its international workforce., The expectation is that this cut along with the cost-cutting measures that it is incorporating, will lower its cash utilization to a great extent.
For the 2013 financial Q3, Delcath Systems, Inc (NASDAQ:DCTH) expects cash utilization to stand in the $7-$8 million range in comparison to its earlier guidance of $9-$10 million for the same period. For the 2013 fiscal Q4, the company has projected cash-utilization to be at the lower end of the $6-$8 million guidance that it had previously provided.
Apart from this, the company also expects an approximately $10M reduction in operating costs due to the initiatives that have been implemented over the last 3 weeks. The company strongly believes that all these actions will help it keep its ability to follow-up on its strategic-abilities that are under evaluation at the moment.
Friday’s trading session
In Friday’s trading, Delcath Systems, Inc (NASDAQ:DCTH) dropped by 2.29%. The opening price of the shares was $0.45, which climbed to an intraday high of $0.60 and dipped to a close of $0.50. Approximately 11.75 million shares were traded on Friday while an average volume of 3.99 million shares were traded over a 30 day period. The 52-week low of Delcath Systems, Inc (NASDAQ:DCTH) shares is $0.29 and its 52-week high is $2.38. The company has a market capitalization of $51.59 billion.
About the company
Delcath Systems, Inc (NASDAQ:DCTH) is a specialty pharma, development stage, medical-device company. It focuses on the field of oncology and initial liver cancers. Delcath is focused on developing and clinical-study of the Delcath chemo-saturation system. This system permits the administration of concentrated-regional chemotherapy. It does this isolating the targeted organ’s circulatory-system.