Delcath Systems' HEPZATO Fuels Revenue Growth, Justifying Buy Rating

Delcath Systems' HEPZATO product has driven strong growth and expansion, leading to a Buy rating from H.C. Wainwright analyst Swayampakula Ramakanth. The company reported significant revenue growth in Q2 2025, attributed to HEPZATO sales and activation of multiple treatment centers. Medicaid participation and regional expansion are expected to enhance treatment volumes and broaden the market. A Buy rating and raised price target of $31 per share justify the bullish stance.

Delcath Systems, Inc. (Nasdaq: DCTH) reported significant financial results for the second quarter of 2025, highlighting strong revenue growth driven by its HEPZATO KIT™ product. The company reported total revenue of $24.2 million, a substantial increase from $7.8 million in the second quarter of 2024 [1].

HEPZATO KIT™ revenue reached $22.5 million, up from $6.6 million in the same period last year, while CHEMOSAT® revenue stood at $1.7 million, compared to $1.2 million in the prior year. Gross margins improved to 86%, up from 80% in the same quarter last year. The company also reported a net income of $2.7 million, compared to a net loss of $13.7 million in the second quarter of 2024 [1].

Delcath Systems activated three new U.S. centers in the second quarter, bringing the total to 20 active centers, with an additional 10 centers accepting referrals. The company also announced its intention to enter into a Medicaid National Drug Rebate Agreement (NDRA) to expand patient access beginning July 1, 2025 [1].

The company's full-year 2025 financial guidance projects total CHEMOSAT and HEPZATO KIT revenue in the range of $93 to $96 million, an increase of more than 150% over 2024. Gross margins are expected to be in the range of 83% to 85% [1].

H.C. Wainwright analyst Swayampakula Ramakanth recently upgraded Delcath Systems to a Buy rating, with a price target of $31 per share, citing strong revenue growth and expansion plans for HEPZATO KIT™ [1].

References:
[1] https://investors.delcath.com/news-releases/news-release-details/delcath-systems-reports-second-quarter-2025-results-and-business