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 diagnostics and radiopharmaceutical agents for the medical industry, jumped as much as 11% after announcing the results of a post-hoc analysis of its phase 3 clinical study of Lymphoseek in patients with head and neck cancer.

So what: According to the company's press release: "In the NEO3-06 Phase 3 study, Lymphoseek localization to lymph nodes showed a strong correlation with a full regional lymph node dissection and pathology analysis with a low false negative rate, a priority in identifying sentinel nodes. Lymphoseek was also observed to home preferentially to pathology-positive nodes at a higher rate than pathology-negative nodes." In other words, Lymphoseek was shown to be quite effective in identifying tumor-positive lymph nodes in early stages of clinical head and neck cancer, which is not only important for mapping which lymph nodes could be cancer active, but also in reducing exploratory surgery for patients with early-stage disease, and in maintaining as much lymphatic tissue as possible to help fight disease.

Now what: Sales of Lymphoseek have thus far been disappointing, to say the least. I've been quite bullish on Navidea's long-term outlook given that the need for cancer diagnostics, and a more personalized approach to cancer treatment, should only increase in the coming decade. However, Navidea's lack of a big partner may come back to haunt the company's ability to rapidly grow Lymphoseek. While still on my watchlist, I wouldn't be surprised, with profitability still a ways off, if Navidea's management team didn't try to maximize shareholder value by putting itself up on the auction block. Keep in mind this is pure speculation on my part; but with losses expected for many years down the road, this might be Navidea's best move for shareholders, and for its leading radiopharmaceutical agent.

Navidea shares may be soaring today, but it likely has a slim chance of keeping up with this top stock over the long run
This smart device –kept secret until now – could mark a new revolution in smart tech (with big implications for health care). It’s a gigantic market opportunity -- ABI Research predicts 485 million of its type will be sold per year. To learn about the small-cap stock making this device possible – the stock that could mint millionaires left and right when its full market potential is realized – click here.

Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 11, 2014, at 5:10 PM, NoonanGf wrote:

    Sean William's article on NAVB is incredibly poor and adolescent. No mention of highly significant ramp up of Lymphoseek sales month after month and quarter after quarter; no mention of superbly statistically significant findings in Lymphoseek particular with ZERO false readings for Head and Neck the day after injection; no mentioned of new management and its commitment to NOT do dilutive financing in the 12-18 months going forward (*minimally); no mentioned of pending EMA (European Medical Association) deliberations; no mentioned of FDA PUDFA date this coming Monday, June 16; no mentioned of another FDA pending decision in October.

    I'd be ashamed to call myself an analysts and have written that article which I judge adolescent at best, and in the lower grades of high school at that.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2990989, ~/Articles/ArticleHandler.aspx, 8/31/2015 5:06:41 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Sean Williams

A Fool since 2010, and a graduate from UC San Diego with a B.A. in Economics, Sean specializes in the healthcare sector and in investment planning topics. You'll usually find him writing about Obamacare, marijuana, developing drugs, diagnostics, and medical devices, Social Security, taxes, or any number of other macroeconomic issues.

Today's Market

updated 2 days ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:04 PM
NAVB $1.82 Up +0.02 +1.11%
Navidea Biopharmac… CAPS Rating: *