New area venture garners millions

The proceeds boost the company's cash balance to more than $37 million and will go toward regulatory approval, clinical trials, capital expenditures and working capital as Delcath Systems prepares to bring its first product to market.

"The funding event is really a transformational event for the company in that we now expect that the whole management team will be able to completely focus on executing the plan and not have to be distracted by the issue of financing," said CEO Eamonn Hobbs.

Hobbs, who has a long history in the area as the co-founder of AngioDynamics Inc., joined Manhattan-based Delcath Systems in July.

In September, Hobbs announced that the company would make its main device, used in the treatment of liver cancer, at the former Fitzgerald Bros. Beverage building on Queensbury Avenue.

Called the Percutaneous Hepatic Perfusion system, the device delivers ultra-high doses of anti-cancer drugs to the liver while preventing the drug from entering the patient's bloodstream.

Hobbs said in an interview Thursday that the Kingsbury facility is on track to be fully operational by Jan. 1.

"We are hiring and building the team out as we speak," he said.

The plant will employ close to 15 people by the end of the year and up to 25 by late January or February.

Delcath Systems is still conducting clinical trials and seeking approvals for the device. Sales could begin in Europe by the middle of next year, with U.S. sales coming later in 2011.

Hobbs said the stock offering, while at the low end of the range set by the board of directors, provides the resources necessary to get the company ready for that next step, including the regulatory approval processes in the U.S. and Europe, ongoing clinical trials, and its go-to-market strategies.

The increased market capitalization could also lead to more sell-side analyst coverage and sponsorship.

Delcath Systems also recently completed the expansion of its executive management team, including additions in the areas of research and development, global sales and marketing and regulatory affairs and quality assurance.

Among the appointments was David Alan McDonald, a former vice president at AngioDynamics, as chief financial officer.

Hobbs said the progress of late for Delcath Systems bodes well for the greater Glens Falls area, particularly in regard to adding high-paying jobs.

"I think this is a glimmer of light on the horizon for the economy in general that a small business (like Delcath) ... can really thrive in this economy and is making progress despite all the economic challenges," Hobbs said.

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