Delcath Systems, Inc. (NASDAQ:DCTH), a medical device company, announced today that it has successfully regained compliance with Nasdaq's audit committee requirements. This follows a notification received on May 29, 2024, from Nasdaq stating that Delcath was not in compliance with Nasdaq Listing Rule 5605, which mandates that the audit committee be composed of at least three independent directors.
The company addressed the issue by appointing Dr. Bridget Martell to its Audit Committee on Monday, July 2, 2024. Dr. Martell's addition to the board meets the criteria for independence as outlined in the Nasdaq Listing Rule 5605(a)(2). The appointment was timely, as the company had until its next annual meeting of stockholders or May 23, 2025, to rectify the non-compliance issue.
Nasdaq's letter to Delcath, dated Sunday, July 8, 2024, confirmed that with Dr. Martell's appointment, Delcath is now in line with the continued listing standards. This development ensures that Delcath will maintain its listing on The Nasdaq Capital Market.
Delcath Systems, headquartered in Queensbury, New York, operates within the surgical and medical instruments and apparatus sector, under the industrial classification code 3841. The information about the company's regained compliance is based on a press release statement.
In other recent news, Delcath Systems has reported noteworthy developments. The company's Q1 earnings surpassed consensus estimates, with a reported revenue of $3.1 million and a net loss of $0.45 per share. H.C. Wainwright, following these financial results, reaffirmed its Buy rating and increased its price target for Delcath Systems from $20.00 to $22.00.
The company has also set a target of $10 million in US quarterly revenue by the end of 2024, backed by $27.2 million in cash investments and a gross margin of 60%. Delcath Systems is actively expanding its number of treatment centers to reach this goal.
In addition, Delcath Systems announced the strategic appointment of Dr. Bridget Martell to its Board of Directors. Dr. Martell's expertise in oncology clinical development is expected to be a significant asset for the company. These are among the recent developments that have occurred within Delcath Systems.
InvestingPro Insights
As Delcath Systems, Inc. (NASDAQ:DCTH) resolves its corporate governance issues, investors may also be interested in the company's financial health and market performance. According to InvestingPro data, Delcath holds a market capitalization of $219.79 million USD, with a significant revenue growth of 56.81% over the last twelve months as of Q1 2024.
This growth is further underscored by an extraordinary quarterly revenue growth rate of 425.8% in Q1 2024. Despite these impressive growth figures, the company's operating income margin remains highly negative at -871.17%, indicating substantial operational costs relative to its revenue.
InvestingPro Tips suggest that Delcath's strong sales growth projection for the current year is a point of interest for investors. Moreover, the company's cash reserves exceed its debt, and its liquid assets surpass short-term obligations, providing a cushion for financial operations.
Still, analysts do not expect the company to turn a profit this year, and Delcath has been quickly burning through cash over the last twelve months. The company's stock has experienced a robust return over the last three months, with a 59.15% increase, and an even more impressive six-month return of 80.59%.
For investors seeking a deeper dive into Delcath Systems' financial outlook, there are additional InvestingPro Tips available. By visiting https://www.investing.com/pro/DCTH, you can access these insights and make use of the exclusive coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. With this information, investors can better gauge the potential risks and opportunities associated with Delcath Systems as it continues to navigate the medical device industry.
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