Navidea Biopharmaceuticals Inc (NYSEMKT: NAVB)
Navidea Biopharmaceuticals is having an incredible day in the market today, and for good reason. The company announced that it has excecuted a key Letter of Intent that will drive a strong amount of revenue into the company. Today, we’ll talk about the news, what we saw from the stock as a result, and what we can expect to see from NAVB moving forward.
NAVB Climbs On LOI News
As mentioned above, Navidea Biopharmaceuticals is having a strong day in the market today after announcing that it has executed a Letter of Intent. The LOI was executed with Cardinal Health, Inc. (NYSE: CAH).
According to the announcement, the letter seals the deal when it comes to the sale of key assets. Under the agreement, CAH will purchase all rights, title and interest to NAVB’s lyphoseek product. The rights to this product will include all FDA-approved, pending and future oncology diagnostic indications in North America.
In return for Lyphoseek rights, CAH will pay NAVB $80 million at the closing of the sale. On top of the $80 million payment, there is a potential for up to $310 million in future payments based on annual sales as well as sales-based milestones.
Also, Cardinal Health has agreed to license back to Navidea a portion of the acquired intellectual property. This stipulation in the agreement is designed to allow the company to continue to develop, manufacture, market, sell and distribute new products that in any way compete with Lymphoseek. In a statement, Michael M. Goldberg, M.D., Chairman of the Board of Directors at NAVB had the following to offer…
“This is a significant announcement for all of us at Navidea. This agreement with Cardinal Health will provide significant financial resources for us to repay all outstanding debt to CRG and accelerate the development of our robust pipeline of diagnostic products, which are notably focused on Rheumatoid Arthritis and Cardiovascular disease, as well as our Macrophage Therapeutics pipeline. We have enjoyed a longstanding and successful relationship with Cardinal Health, and we are looking forward to continuing our collaboration.”
How The Stock Reacted To The News
As investors, one of the first things that we learn is that the news moves the market. Any time positive news is released with regard to a publicly traded company, we can expect to see gains in the value of the stock associated with that company. Adversely, negative news will generally lead to declines. In this particular case, the news that was released was overwhelmingly positive. As a result, we’re seeing massive gains in the value of NAVB in the market today. Currently (12:21), the stock is trading at $0.62 per share after a gain of $0.28 per share or 81.50% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from NAVB. At the end of the day, the sale of Lymphoseek is an incredibly strong news. Not only will the sale drive revenue very soon, it also has the potential to drive strong revenue in the future. As a result, Navidea is in a very strong position financially. With this strong financial position and a detailed plan for growth, I’m expecting to see gains ahead.
What Do You Think?
Where do you think NVAB is headed moving forward? Join the discussion in the comments below!