Here's What's Next From Provectus Biopharmaceuticals Inc (OTCMKTS:PVCT)

Last time we looked at Provectus Biopharmaceuticals Inc (OTCMKTS:PVCT), the company was trading in and around $0.04 a share. This was back in April. During the months subsequent to that coverage, the company has taken a bit of a hit and currently goes for about $0.027 a piece. That's a % depreciation across the period. As part of our coverage, we outlined the potential for what amounts to a longer term turnaround in fortunes for Provectus and its shareholders.Our thesis was relatively simple. The company has a couple of what look to be strong development stage assets in its pipeline and it has spent the last three or four years carrying said assets towards commercialization. The lead asset is called PV-10 and Provectus is trying to get it green lighted as a treatment for patients with metastatic melanoma. It’s in a phase III trial right now and, as we touched on last time we took a look at this one, it’s on this phase III trial that the majority of Provectus’ valuation, and potential future growth, rests. The secondary asset is a psoriasis (and various other dermatological condition) target called PH-10. This one has completed a phase II study but it's yet to advance into a pivotal.So why are we looking at Provectus now?Well, the company has just picked up a boost in its market capitalization and, at a glance, the driver behind the run isn’t obvious. A look at the latest filings reveals a quarterly report that hit press back on August 9 and an 8K that did the same a few days earlier. The latter details a circa $6 million compensatory damages payment that comes on the back of some legal proceedings between Provectus and Harry Craig Dees, the CEO that left the company (more accurately, was fired from the company) back during the early part of last year. That's a little bonus and, for a company the size of Provectus (market capitalization at last count came in at a little over $10 million) it's a substantial input, but it's hardly a game changer.The former then, the 10Q, must be what's driving action right now – so what did it tell us?Revenues were nonexistent, but that’s an expected outcome. This is development stage biotechnology, after all. Net loss for the three months ended June 30, 2017, came in at $3.29 million, which is a little narrower than the $5.0 million recorded during the same period a year earlier. For the six months' period ended the same date, net loss hit $7.68 million, again down on the $13.55 million recorded a year earlier.The cash figure (which is really the number that's important here) came in at $1.12 million as of June 30. Management didn’t detail the runway in the latest report but, given burn, there's not much in the way of leg room to carry the company forward without a raise.That, in our eyes, is the primary risk here. Provectus' lead asset, the above mentioned PV-10, could be a real hit if it gets a green light for commercialization in the US, but the company needs to successfully complete its pivotal study and this study is going to cost money to wrap up. Shareholders are going to have to bear the brunt of this cost between now and completion. If the topline data from the study hits press as indicative of efficacy (and the early to mid stage data suggests there's no reason why it won't) this dilution/raise risk will be mitigated by upside potential. If it doesn’t, Provectus is going to have to fall back on its phase II asset and shareholders are going to have to foot yet another bill.So where’s the stock going?We expect Provectus to continue to appreciate heading into the end of 2017 as markets load up speculatively ahead of topline from the MM study. There's opportunity at current prices to pick up an exposure to this loading but it comes with a binary risk attached and rooted trial outcome.Check out our previous coverage of this one here. We will be updating our subscribers as soon as we know more. For the latest updates on PVCT, sign up below!Image courtesy of Andy Wier via FlickrDisclosure: We have no position in PVCT and have not been compensated for this article.