Delcath Systems Q4 2024: Unraveling Contradictions in R&D Spending, Treatment Schedules, and European Revenue Growth

These are the key contradictions discussed in Delcath Systems, Inc.'s latest 2024Q4 earnings call, specifically including: R&D spending expectations, impact of holidays on treatment schedules, number of treatments per patient, center activation strategies, revenue growth expectations in Europe, and reimbursement process challenges:



U.S. Launch Success of HEPZATO:
- Delcath Systems generated $32.3 million in revenue from HEPZATO in the U.S. for the year 2024, including $13.7 million in the fourth quarter.
- The success was driven by the U.S. launch of HEPZATO in January 2024, which provided a novel treatment to patients, and the securing of permanent J-codes and NTAP payments.

European Market Expansion:
- European CHEMOSAT volumes grew by 137% in 2024, with Germany up 75% and other markets doubling year-over-year.
- This expansion was supported by strategic clinical trials and publications, which are important for supporting further reimbursement efforts.

Financial Stability and R&D Investment:
- The company ended 2024 with $53.2 million in cash and investments, achieving positive adjusted EBITDA of $4.6 million in the fourth quarter.
- Financial stability was driven by receipts from warrant exercises and a focus on R&D to maximize the potential of the hepatic delivery system.

Centers of Expertise and Market Penetration:
- Delcath activated three new U.S. treatment centers in the fourth quarter and plans for more centers to increase to 30 by year-end.
- This expansion is supported by a bolstered commercial team and efforts to integrate HEPZATO into treatment algorithms, enhancing clinical traction and referrals.