Delcath Systems Inc (DCTH)

[Tekterra]

Here something else to watch for. We knew they have two trials that supposed to report results in Q2 right. Now, it's almost September, if we don't get any PR on the trail results that's another sign of a BO partnership. Because during negotiation, trial results are likely held as confidential because suitor does not want competitors finding out more about the success of Chemosat. This is very common to happen in negotiations. During this quiet time, company is unlikely to PR and cause any fluctuations in share price. A non disclosure agreement typically will be signed by both parties. So as we get closer to year end without hearing anything on the trial results and that management continues to be mostly quiet a BO partnership is almost certain. Plus more funds will buy in. Hope they don't pass RS, it will make it all the more likely since the company cannot continue on without funding past 2017.

At the minimal the deal should be over 1$. A more fair deal should be in the 2$ range considering 700 mill market plus this is a branded and patent treatment can easily sell for 2-3x. 2-3$ buyout is not unreasonable. A partnership might be something like 200 million milestone with some up front payments. That will shoot the market cap to about 300 million at least.


Keep alert guys, you might be surprised. Watch for signs of BO partnership. Especially if company come out saying they will be seeking strategic alliance.