Quick Win by the Algorithm: NAVB Completes Sale

Quick Win By the Algorithm

On February 27, 2017, the I Know First algorithm had predicted a bullish forecast for Navidea Biopharmaceuticals, Inc. (NAVB). NAVB had a signal of 35.41 and a predictability of 0.07. In accordance with the algorithm, the company reported gains of 44.68% experiencing a quick win by the algorithm.

quick win

Navidea Biopharmaceuticals, Inc. (NAVB) is a biopharmaceuticals company headquartered in Dublin, Ohio. Navidea develops and commercializes diagnostic and radio-pharmaceutical imaging solutions for cancer and other diseases.

quick win

Navidea Biopharmaceuticals successfully negotiated the sale of Lymphoseek.  Lymplhoseek is a cancer diagnotistic aid.  Cardinal Health Inc paid $83 million in cash for the North American rights of their first approved drug.  Consequently, the deal has the potential to see an increase from its current value to $310 million over the lifetime of the deal.  On March 2, 2017, the shareholders voted with an overwhelming majority in favor of the sale.

With a further $20 million guaranteed over the next 3 years, Cardinal has already paid $3 million.  In addition to the $80 million from the sale. With the surplus of cash, Navidea was able to pay off a $59 million temporary settlement with lender CRG. In turn, CRG released all liens it held on the companies assets.  Furthermore, CRG committed to transferring back $5 million from frozen bank accounts.

After all repayments and other expenses, Navidea had $15.6 million in cash and $3.3 million in payables.

The asset purchasing agreement states that Navidea licenses back from Cardinal the rights to sell in other continents. Although, Navidea successfully keeps the rights to the core micro-biology of the drug.

More positives came out of the sale for Navidea, with their distributor in China, Beijing Sinotau Medical Research Co. Ltd. halting their Federal Lawsuit against them. The lawsuit was in response to the doubtfulness of their terms, with the distributor fearing their rights in China.

These factors may explain the stock’s yield of 44.68% in its given time period.

This bullish forecast on NAVB was sent to current I Know First subscribers on February 27, 2017. 

Before making any trading decisions, consult the latest forecast as the algorithm constantly updates predictions daily. While the algorithm can be used for intra-day trading the predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.