UPDATE: Wedbush Downgrades Delcath Systems to Neutral Following Negative ODAC Vote

In a report published Friday, Wedbush analyst Gregory R. Wade downgraded the rating on Delcath Systems

from Outperform to Neutral, and lowered the price target from $5.00 to $1.30. In the report, Wade noted, “Delcath's liver-specific chemotherapy drug device combination product (CHEMOSAT – EU, Melblez – US) allows for the potential control of life-threatening metastatic or primary cancer in the liver. Approved in Europe for the treatment of all histologies, the company is at an early stage of its commercial development, presently working on training and activating hospitals to perform the procedure, and obtaining reimbursement. The negative ODAC recommendation in the US likely means that additional clinical studies with overall survival as an endpoint may be necessary for US approval. We would expect the significant improvement in hepatic progression free survival to, if replicated in a study without a crossover design, translate into an overall survival benefit and note that primary hepatic carcinoma may represent one of the least confounded settings in which to conduct such a study.” Delcath Systems closed on Thursday at $0.79.