A third quarter financial report attesting to a solid foundation for long-term growth might as well be the catalyst, poised to trigger a turnaround in GT Biopharma Inc (OTCMKTS:GTBP) sentiments and prospects. Investor confidence in the stock had hit all-time lows depicted by declining share price and market price.
GT Biopharma Price Analysis
However, the stock has bounced back on the management team reiterating the company’s long-term prospects and growth metrics. Changes to the leadership team as well as the execution of critical preclinical, clinical, and regulatory milestones are the latest catalysts strengthening investor confidence on GT Biopharma.
The stock has since bounced back from below $1 a share mark, after feeling the full effects of short sellers for the better part of the year. The Chief Executive Officer, Raymond Urbanski, reiterating that the company is in a transitional phase appears to have reinvigorated investor interest in the stock.
While the stock is still engulfed in a long-term bear trend, all indication is that a turnaround in the long-term direction of trade may be in play. The stock faces immediate resistance at the $1.50 a share level on its way back to a critical $1.50 to $2.50 trading range.
After the recent plunge lower, the stock needs to bounce back to the trading range to avert suggestions of a further slide. A rally followed by a close above the $2.50 level, should bring to an end a sell-off wave that had plunged the stock to all-time lows.
About GT Biopharma
GT Biopharma is a clinical-stage biopharmaceutical company that develops and commercializes novel immune-oncology products. The company develops its products using proprietary Tri-specific Killer Engager, Tetra Specific Killer Engage, and antibody-drug conjugate technology platforms. The company is currently working on OXS-1550 a fusion protein-drug that targets cancer cells expressing the CD19 receptor.
Clinical Program Milestones
GT Biopharma continues to show signs of bottoming out from all-time lows at the back of a number of milestones that affirms its long-term prospects. For starters, the company has received an FDA clearance that paves the way for it to commence the first-in-human Phase 1 study of GTB-1550 for the treatment of acute myelogenous leukemia.
The clinical stage biopharmaceutical company is also fresh from announcing positive preclinical data on two candidate drugs for the treatment of ovarian, head and neck cancers. The company also entered into an agreement with a major pharmaceutical company and consequently initiated a preclinical combination trial, between GTB 1550 and multibillion-dollar oncology drug.
“We have made significant progress in building a solid foundation for the Company in what we believe is an important transitional phase for GT Biopharma. The additions and changes to the leadership team and execution of key preclinical, clinical and regulatory milestones are a testament to this progress,” commented said Mr. Urbanski.
Widening Net Loss
GT Biopharma finds itself in a precarious position even on making impressive strides in the development of its novel treatment for addressing different types of cancer. Net loss in the recent quarter surged to (-$235,783,000) or (-$4.70) per diluted share, compared to a net loss of (-$130, 625,000) as of the same quarter last year. For the nine months ended September 30, 2018, the company’s net loss stood at (-$254, 955,000) compared to a net loss of (-$138, 146,000) reported the same period last year.
The company’s total deficit currently stands at (-$524,453,000) with a cash balance of $1.2 million. Amidst the dire financial position the company finds itself in, the chief executive officer insists they are doing all they can to navigate through the challenging times.
“However, as we navigate through this phase, we certainly face challenges, including ensuring we are properly funded and have the right team in place to propel the Company to our next phase of growth. Successfully completing financing and bolstering our management team and Board in the near term remains a priority,” said Mr. Urbanski.
GT Biopharma has made impressive strides in the development of key cancer treatments poised to strengthen its long-term prospects. The fact that the company has received FDA clearance to commence in human trials is a significant milestone.
The management has also reaffirmed commitment to securing additional capital. The focus is on accelerating the execution of the company’s growth strategy and advancing clinical development programs in a bid to drive shareholder value.
That said, the stock needs to rise and stabilize above the $1.50 mark for one to consider it a long-term play.
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Disclosure: We have no position in GTBP and have not been compensated for this article.