PropThink: Expense Cuts Ahead of a Pivotal Year for AVEO and Tivozanib
(Thomson Reuters ONE) -
By Jake King
In a move that management says will save the company more than $100M over the
next three years, AVEO Oncology (NASDAQ:AVEO) cut its work force by 17% and made
strategic shifts to lighten the R&D expenses of early-stage compounds.
Management is trying to be as candid as possible going into 2013 as investor
confidence waned this year and stock price dipped lower and lower, in fact
setting a new 52-week low just this month. The expense cuts and visibility
couldn't be more pertinent as AVEO prepares for the commercial launch of
tivozanib, a potential first-line treatment for Renal Cell Carcinoma (RCC). If
approved, the drug will launch late next year.
The company finished the quarter with $189M in cash, equivalents, and short-term
investments and expects to end 2012 with roughly $135M, which, says management,
should last through next year. Management estimates, however, hinge on
tivozanib's approval, which will result in a substantial milestone payment from
partner Astellas Pharma (OTC:ALPMY) and may allow recognition of some tivozanib
revenue in the 4th quarter. That cash will be crucial in 2013 as the company
moves from a developmental entity into commercialization. The company is already
ramping up marketing efforts in advance of approval, bringing on industry
veteran Brad Bailey as VP of Sales and creating an 80-member salesforce for the
drug, for which Astellas will split expenses.Continue reading.
See this article in its original format by clicking here.
About PropThink
PropThink is an intelligence service that delivers long and short trading ideas
to investors in the healthcare and life sciences sectors. Our focus is on
identifying and analyzing technically-complicated companies and equities that
are grossly over or under-valued. We offer daily market coverage, weekly feature
stories, and a newsletter to investors who subscribe on PropThink.com. To learn
more, follow us on Twitter or visit us at http://www.propthink.com.
Disclaimer:
You should assume that as of the publication date of any report or letter,
PropThink, LLC and persons or entities with whom it has relation ships
(collectively referred to as "PropThink") has a position in all stocks (and/or
options of the stock) covered herein that is consistent with the position set
forth in our research report. Following publication of any report or
letter, PropThink intends to continue transacting in the securities covered
herein, and we may be long, short, or neutral at any time hereafter regardless
of our initial recommendation. To the best of our knowledge and belief, all
information contained herein is accurate and reliable, and has been obtained
from public sources we believe to be accurate and reliable, and not from company
insiders or persons who have a relationship with company insiders. PropThink was
not compensated to publish this article. Our full disclaimer is available
at http://www.propthink.com/disclaimer.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: PropThink via Thomson Reuters ONE
[HUG#1653721]
Unternehmensinformation / Kurzprofil:
Datum: 30.10.2012 - 18:02 Uhr
Sprache: Deutsch
News-ID 197761
Anzahl Zeichen: 3794
contact information:
Town:
New York
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 197 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"PropThink: Expense Cuts Ahead of a Pivotal Year for AVEO and Tivozanib"
steht unter der journalistisch-redaktionellen Verantwortung von
PropThink (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
