On Tuesday, Shares of Navidea Biopharmaceuticals, Inc (NYSEMKT: NAVB) gained 1.30% to $0.89. The share price is trading in a range of 0.83 - 0.91 (Price in Dollars). The stock exchanged hands with 742,652 shares contrast to its average daily volume of 497,979 shares. Navidea Biopharmaceuticals declared financial results for the first quarter of 2016. Navidea stated total revenue for the first quarter of 2016 of $4.70 million, counting Lymphoseek® (technetium Tc 99m tilmanocept) injection sales revenue to Navidea of $3.80 million. The net loss attributable to common stockholders was $3.70 million.
FINANCIALS
Total revenues for the quarter ended March 31, 2016 were $4.70M contrast to $2.10M in the first quarter of last year. First quarter 2016 product revenues recognized from the sale of Lymphoseek were $3.80M, contrast to $3.50M in the fourth quarter of last year and $1.80M in the first quarter of last year. This represents a sequential quarter-on-quarter growth of 8.0% and year-over-year growth of about 106%. Q1 2016 revenue for licensing milestones, various federal grants and other revenue were $940,000 contrast to $791,000 in the fourth quarter of last year and $273,000 in the first quarter of last year.
Gross margins on Lymphoseek product sales remain strong at 86.0 percent for the first quarter of 2016 contrast to 76.0 percent for the first quarter of 2015.
Total operating expenses were $6.80 million, contrast to $9.50 million in the first quarter of last year. Research and development expenses for the first quarter of 2016 were $2.70 million, contrast to $4.0 million in the first quarter of last year. The net decrease from 2015 to 2016 was mainly a result of reductions in NAV4694, NAV5001 and Lymphoseek product development costs coupled with reduced headcount and related support costs, offset by raised therapeutics product development costs. Selling, general and administrative expenses for the first quarter of 2016 were $4.10 million, contrast to $5.50 million in the first quarter of last year. The net decrease was mainly because of reduced general and administrative headcount following the first quarter 2015 reduction in force coupled with reduced costs for contracted medical science liaisons, business development consulting services, market development expenses related to Lymphoseek, and license fees, offset by raised commercial and medical headcount coupled with raised legal and professional services.
Navidea’s net loss attributable to common stockholders for the quarter ended March 31, 2016 was $3.70 million, or $0.020 per share, contrast to $7.30 million, or $0.050 per share, for the same period in 2015.
Based on CRG’s claims that the Company is in default under the terms of the CRG Loa contract, and in accordance with current accounting guidance, the Company has classified the net balance of the CRG Term Loan as a current liability on the merged balance sheet as of March 31, 2016.
The Company reiterates its 2016 total revenue estimate of $23 million to $25 million. Margins on Lymphoseek product sales are predictable to continue to exceed 80% in the coming quarters. The Company also anticipates, following completion of the partnering activities for NAV4694, that cash operating expenses on a quarterly basis will continue to decrease to the point necessary for the Company to achieve its aims of cash flow breakeven from operations. This guidance excludes therapeutic-related research and development costs for the Manocept platform which are predictable to be funded separately by Macrophage Therapeutics, Inc.
