Quality Investors Knock On Navidea's Door; Validates Lymphoseek Potential
by PropThink
By Jake King
On Wednesday, Navidea Biopharmaceuticals (NAVB) announced that two institutional investors, including J.P. Morgan Asset Management, purchased $4.8M shares of its common stock in an overnight transaction. Impressively, the deal was done "at market" (price of $3.10) with no options or warrants, and added some fresh capital to the business. While only J.P. Morgan asset management, a high quality healthcare investor, was named as a buyer, sources say the other party is a sophisticated healthcare mutual fund or hedge fund. Given that the company had no plans to raise money ahead of the potential Lymphoseek approval (anticipated in late April), no warrants or options were included in the transaction, and that the deal was done at market prices, we believe that the investors actually approached the company to get into the deal in one large purchase. This is known as a "reverse inquiry" in the market, and helps to validate the company's story with sophisticated investors doing deep due diligence. As a result, we see this announcement as a major positive for the company. Lymphoseek is a radiopharmaceutical agent being developed for use in intra-operative lymphatic mapping and lymph node imaging. The FDA will decide on Lymphoseek's approval by April 30, which we consider a high probability event based on Navidea's quick turnaround on a manufacturing-related Complete Response Letter (CRL). Lymphoseek has a shot at a large and lucrative market if it can demonstrate lymphatic mapping capabilities in a broad array of oncology indications (read PropThink's full report here). read more »
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