Navidea Biopharmaceuticals, Inc. (NYSE MKT:NAVB) recently completed a sale of common stock and warrants for gross proceeds of $30 million under a registered direct public offering. Since that placement, Navidea shares have experienced a serious, and in the Company’s estimation, unwarranted decline in value. The Company reiterates that it raised the funds primarily to enhance a series of initiatives underway including commercial opportunities for Lymphoseek ® (technetium 99m tilmanocept) Injection outside the U.S., the continued development of its neurodegenerative imaging portfolio, and further evaluation of Manocept™ platform initiatives.
Dr. Mark Pykett, Navidea CEO, commented, “We remain enthusiastic about the long-term prospects for Lymphoseek and are highly encouraged by key quantitative and qualitative metrics being met or exceeded. We are also encouraged in these early days of launch to have received separate reimbursement for the product which we expect to further contribute to Lymphoseek adoption. We are looking forward to a number of value creating catalysts in the near term which we believe are enabled by the additional capital. These activities include keeping our Phase 3 neurology programs moving forward and advancing Navidea’s strategic role commercially outside the US. Importantly, the financing enables the acceleration of a number of potential new opportunities from our Manocept platform, announced several weeks ago and for which we expect to provide an update on shortly. We believe these new opportunities offer compelling potential while Lymphoseek revenues continue to grow.”
Dr. Michael Goldberg, Principal, Montaur Capital Partners, LLC and Portfolio Manager of Montaur, said, “We continue to believe in Navidea and the underlying fundamentals and value, and are excited by the potential of the expanded pipeline and partnering possibilities based on the recently disclosed Manocept platform which represents an important new engine for the Company’s future.”
The Company believes the change in its share price following the transaction reflects a substantial over-reaction relative to the continued strong, underlying fundamentals of the Company. The Company believes the recent financing enhances its ability to pursue important new opportunities with Lymphoseek, its registration programs, and its pipeline efforts, including Manocept.