Will Delcath Systems, Inc (NASDAQ:DCTH)’s Strategic Re-organization Bring It Back On Track?

Posted by Beth Hart October 7, 2013 0 Comment 3718 views

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.

Updated guidance

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.

About Beth Hart

Beth is from New York. She has two master’s degrees and served as a lecturer in B-School. Her master’s degree is an MBA in Global Management from the University of Phoenix (2010). She has worked for small businesses, public agencies, and large corporations. She does write articles as a freelancer.

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