Series E and E1 Warrant Exercises Secure $16.3 Million for Delcath Systems
Delcath Systems, Inc. (Nasdaq: DCTH), an interventional oncology company dedicated to treating primary and metastatic liver cancers, announced today the exercise of 1.7 million Series E and Series E1 warrants, generating $16.3 million in funding. This exercise of Series E and Series E1 warrants, which were issued in July and August 2019 as part of a private placement with an exercise price of $10.00 per share, occurred before their expiration on December 24, 2024. Approximately 6.6% of the warrants exercised were subject to cashless exercise provisions.
This new capital infusion, coupled with the company’s existing cash reserves and expected revenue growth from operations, positions Delcath in a strong financial position to advance its ongoing commercialization efforts and clinical development pipeline. The company plans to use this Series E funding, along with the Series E1 warrant proceeds, to drive the growth of its product portfolio and support new clinical trials.
Gerard Michel, Delcath’s Chief Executive Officer, commented on the company’s strengthened financial outlook, stating, “With the exercise of these Series E warrants, Series E1 warrants, our current cash on hand, and anticipated cash flow from operations due to our growing revenue, we are well-positioned to execute our commercialization strategy and clinical development plan.” Michel further emphasized, “As we continue to drive the commercial success of HEPZATO for treating uveal melanoma patients, this funding enables us to confidently invest in new clinical trials.” The Series E and Series E1 warrant exercise marks a crucial step in positioning Delcath for future growth.
About Delcath Systems, Inc.
Delcath Systems is an innovative interventional oncology company focused on the treatment of liver cancers, both primary and metastatic. The company’s flagship products, HEPZATO KIT™ (HEPZATO (melphalan) for Injection/Hepatic Delivery System) and the CHEMOSAT® Hepatic Delivery System, are specifically designed to administer high-dose chemotherapy to the liver while limiting systemic exposure and mitigating the associated side effects. These technologies enable more targeted and effective treatment of liver tumors while minimizing damage to other organs.
HEPZATO KIT and CHEMOSAT Technologies
HEPZATO KIT is a combination drug and device product that was approved by the U.S. Food and Drug Administration (FDA) for sale in the U.S. It consists of two main components: the chemotherapeutic agent melphalan and Delcath’s proprietary Hepatic Delivery System (HDS). The HDS isolates the liver’s venous blood from the systemic circulation during the procedure, ensuring that high doses of melphalan are delivered directly to the liver while filtering out systemic blood. This targeted delivery minimizes the typical side effects associated with chemotherapy and enables a higher concentration of the drug to target liver tumors specifically.
The FDA-approved HEPZATO KIT is currently used to treat adult patients with metastatic uveal melanoma (mUM) who have unresectable hepatic metastases affecting less than 50% of the liver. It is intended for patients with no extrahepatic disease or with extrahepatic disease that can be resected or treated with radiation, such as disease in the bone, lymph nodes, subcutaneous tissues, or lungs. The HEPZATO KIT offers a liver-directed treatment approach, aiming for a clinically significant tumor response with minimal toxicity to the liver and other organs.
In Europe, the CHEMOSAT Hepatic Delivery System is sold as a device-only configuration and is approved for use as a Class III medical device. It is used for percutaneous hepatic perfusion (PHP) procedures to deliver melphalan directly to the liver. CHEMOSAT has been successfully applied in several major medical centers across Europe for the treatment of a variety of liver cancers, showcasing its versatility and potential for broader applications in liver cancer treatment.
Financial Growth and Clinical Development Plans
The recent exercise of Series E and Series E1 warrants is expected to further support Delcath’s ongoing commercialization efforts and clinical development activities. The $16.3 million raised will not only bolster the growth and success of HEPZATO but also fund new clinical trials aimed at expanding indications for HEPZATO and advancing other therapies in the company’s pipeline.
Delcath’s strategic commitment to enhancing treatment options for liver cancer patients is evident in its ongoing clinical development efforts, which focus on providing more effective, less invasive treatments for this challenging patient population.
As the company expands its product offerings and deepens its presence in the oncology market, Delcath’s leadership remains focused on providing innovative and impactful treatments for liver cancer patients. The successful exercise of Series E and Series E1 warrants represents a key milestone in strengthening Delcath’s financial stability and supporting its mission to improve patient outcomes in the field of interventional oncology.
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