Delcath Systems (NASDAQ:DCTH) stock is rocketing higher on Tuesday after getting an update from the U.S. Food and Drug Administration (FDA).
This has the FDA approving HEPZATO KIT. This is Delcath Systems’ treatment for adults with metastatic uveal melanoma (mUM). Specifically, it covers those with “unresectable hepatic metastases affecting less than 50% of the liver.”
Delcath notes that there are currently about 1,000 cases of mUM per year and it typically affects the liver. This aggressive form of cancer often leads to liver failure, which is often followed by death.
Vojislav Vukovic, Chief Medical Officer of Delcath Systems, said this about the update news:
“HEPZATO KIT is the only liver-directed therapy that can treat the whole liver […] Scientific literature supports that HEPZATO KIT may have broad applicability in other tumor types, and we intend to expand our development efforts beyond uveal melanoma given the high incidence of unresectable hepatic dominant tumors.”
What This Means for DCTH Shareholders
With this news comes a trigger for a new set of funding. This approval activates the second Private Investment in Public Equity (PIPE) financing and Tranche A warrants. That gives PIPE investors 21 days to exercise their warrants, which would result in an additional $34.9 million in financing for the company.
All of this news brings with it heavy trading for DCTH stock. As of this writing, more than 4.6 million shares have changed hands. For comparison, the company’s daily average trading volume is about 162,000 shares.
DCTH stock is up 79.2% as of Tuesday morning.
Investors looking for more of the latest stock market news will want to stick around!
InvestorPlace is home to all of the most recent stock coverage traders need to know about on Tuesday! That includes the biggest pre-market stock movers this morning, the latest news concerning Rivian (NASDAQ:RIVN) stock and more. You can find all of this news at the links below!
More Tuesday Stock Market News
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
