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Navidea Biopharmaceuticals, Inc Message Board

  • mirror_world_man mirror_world_man May 6, 2013 10:05 PM Flag

    SA quote...

    Interestingly, when a company receives FDA approval for a product that can positively affect cancer patients, and when the DSMC recommends closing the study early due to positive results for its head and neck cancer study, one would expect the company's stock would rise. However, in the past three months Navidea stock dropped over 6%. The reason has probably more to do with the company's financials than the product. Revenues for 2012 were $79,000, a considerable drop compared to $598,000 for 2011. But the real issue appears to be the sustainability of the company, as it has roughly $11 million in cash, and in 2012 the company burned through $28.1 million. So the concern is: Will Navidea run out of capital before the products can bring in revenue to sustain the company? Brent Larson, Navidea's Senior Vice President and CFO, did address the financial concerns, "Through flexible access to multiple available funding sources, we have maintained a strong financial position in advance of expected revenue from our first radiopharmaceutical product, Lymphoseek. We believe that our cash flow and available financial resources are sufficient to support the ongoing advances in our pipeline programs and operating needs for the foreseeable future." The company has a $50 million equity line from Platinum-Montaur Life Sciences, and is confident that they will be able to secure a European partner for Lymphoseek, which could add an additional $10 million in working capital.

    Navidea has a market cap of $297.5 million. Its stock closed on Thursday May 2nd at $2.45 per share. Navidea is still losing money, but that is expected with a development-stage company. However, the company does have a good U.S. partner for Lymphoseek with Cardinal Health to market and distribute the treatment. Though I'm not yet sold on rushing out to buy Navidea due to cash flow concerns, Lymphoseek should have strong sales once on the market, and Navidea does have a number of radiotherapy diagnostic products in development, including indications for Parkinson's, Alzheimer's, and various cancers.

    Sentiment: Strong Buy

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