Why Navidea Biopharmaceuticals, Inc. Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Navidea Biopharmaceuticals (NYSEMKT: NAVB  ) , a developer of precision diagnostics and radiopharmaceutical agents, jumped as much as 12% after reporting its fourth-quarter earnings results before the opening bell.

So what: For the quarter, Navidea reported revenue of $535,000, consisting of $343,000 from its FDA-approved lymphatic mapping agent Lymphoseek, up from $144,000 in sales in the sequential third quarter. Net loss, however, jumped considerably to $13.1 million from $7 million in the year-ago period. This translated into a net loss of $0.10 per share, $0.01 per share worse than analysts had predicted. Looking ahead, Navidea anticipates $5 million-$6 million in Lymphoseek revenue in fiscal 2014 compared to $614,000 in fiscal 2013.

Navidea also announced that it had closed on a $30 million five-year senior secured term loan with Oxford Finance, which will help with the commercialization and education of Lymphoseek.

Now what: You might be scratching your head and thinking to yourself, "Didn't Navidea miss its EPS loss estimate? Why are shares up?" The reason is a combination of rapid sequential growth in Lymphoseek from the third quarter, as well as the recently closed non-dilutive financing, which will allow it to aggressively market Lymphoseek. What investors should have their eyes on here is the mid-June PDUFA date to expand Lymphoseek's indications beyond breast and cancer and melanoma and into head and neck cancers as well. With a big push expected in utilizing diagnostics to personalize treatment options for cancer patients over the next decade, I could certainly see Navidea becoming a success. Although today's earnings report wasn't much to look at, I'd suggest adding it to your watchlist for further review.

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  • Report this Comment On March 07, 2014, at 9:44 AM, Minow wrote:

    Thanks for the article Sean! You're definitely right I was scratching my head trying to figure NAVB-out! Earning snuck up on me, I consulted the charts and I'm up and long until I can make a nice profit or the stock breaks down!

  • Report this Comment On March 08, 2014, at 11:12 PM, bridgett wrote:

    the " end of china " BORING

    the most BORING thing I have listened to

    in ages

    I was SO BORED I finally went to the bathroom

    came back a few minutes later and it was still

    BLA BLA BLA

    so I finally shut it off.

    If you want Better than Ambien listen to this garbage.

    I only signed in just to let others know how

    BORING AND REDICULOUS this was.

    .

    what a waste of time..

    .

    .

  • Report this Comment On March 08, 2014, at 11:14 PM, bridgett wrote:

    " The End of the "Made-In-China" Era "

    if suicidal listen to this

    it will bore you to death then you won't have to kill yourself

    you will quickly learn that there are things

    way worse in others lives then your own

    Just spend five minutes listening to the BLA BLA BLA

    and you will know, your life is way better

    then the fools here.

    .

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10/24/2014 4:03 PM
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Navidea Biopharmac… CAPS Rating: *

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