Craig-Hallum starts Delcath Systems with a Buy

As previously reported, Craig-Hallum initiated coverage of Delcath Systems with a Buy rating and $18 price target. The analyst believes Delcath is flying under the radar, despite “being uniquely positioned” with a unique chemotherapy agen drug delivery device called Hepzato Kit. Craig-Hallum noted that its first approval was granted in a rare ocular cancer, but the firm thinks this first approval could “be just the beginning” for Hepzato and “see a clear clinical rationale for use in other, larger-incidence tumor types.” The analyst sees a reasonable scenario where other tumor types could add another $300M+ to the firm’s peak sales assumptions presenting “an attractive upside case for investors.”