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Provectus Biopharmaceuticals Inc (OTCMKTS:PVCT) Edges Forward Towards Its Turnaround

Provectus Biopharmaceuticals Inc (OTCMKTS:PVCT) Edges Forward Towards Its Turnaround
Written by
Chris Sandburg
Published on
April 24, 2017
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Provectus Biopharmaceuticals Inc (OTCMKTS:PVCT) ran up to the tune of 22% on Friday, as the company announced the reestablishing of a Strategic Advisory Board (SAB). The news marks what many will see as a key step in the transitioning of Provectus from stalled biotech to a potential mover.Here's a look at what just happened, and where it fits in the grand scheme of this company's past and future.Provectus is a development stage biotechnology company that's trying to bring a drug called PV-10 to market. It's an immuno-oncology drug, and it's currently under investigation as a potential therapy for metastatic melanoma. It's in a phase III trial right now, and it's on this phase III trial that the majority of Provectus' valuation, and potential future growth, rests.Aside from the MM asset, there's also a drug called PH-10 that has completed phase II trials set up to investigate its potential as a treatment for atopic dermatitis and psoriasis.These assets, however, and their development pathways, are only half the story.Sentiment is essentially dominated by concerns surrounding mismanagement, toxic finance, delisting and the potential for a damaging reverse split. This sentiment has put considerable pressure on any growth potential, and while the company is trading at a reasonable premium to its year open price, we're sort of in a situation whereby any buy volume is relatively quickly cut off by sellers, and there seems to be very little in the way of fresh speculative volume flowing into the stock.The problem, as mentioned above, is that no one wants to take a position in the company's future before it's sorted out its management and operational issues. It's a problem, sure, but it might also be an opportunity.As the company takes steps towards tidying itself up, sentiment is going to shift in focus from operational discord to the potential of Provectus' lead development assets. As this shift takes place, the management induced weight that's been put on the stock over the last twelve months will lift, and we should see price start to rise as sentiment rebalances in line with the potential for development-type catalysts hitting press.And this is where the latest announcement comes in to the picture.As we noted in our previous coverage, a group of shareholders called the PRH Group has come up with the capital required to get things moving towards potential commercialization, and said group is implementing a number of necessary changes to that aim. The appointment a couple of individuals to the SAB, and the reestablishing of the latter, is a key first step in this process. Basically, this team will now work to get the remaining elements of the forward plan in place – primarily, getting a new CEO.Once a new CEO is at the helm, and with said CEO supported by what is essentially a completely revamped directorship and board, this company will become an attractive prospect in the space – an undervalued late stage development entity, with a pipeline of potentially blockbuster assets.So where does this leave things right now, and what's the next step?Well, this is a first step in a likely pretty drawn out transition, but there's a good chance it's opened the doors to a number of potentially game changing announcements. The above mentioned new CEO appointment is one, as is the appointment of a new Chief Medical Officer (CMO), the latter of which will drive the pipeline towards maturation. There's also the reestablishing of the enrollment process for the phase III, which right now is essentially on hold outside of patients dosed, and the initiation of some pivotals for the PH-10 asset.Capital is in place to get the company a long way towards these aims, and it's in place with some relatively favorable terms, so while Provectus isn’t out of the woods, it's making forward strides, and that's important if it's going to regain some credibility.We will be updating our subscribers as soon as we know more. For the latest updates on PVCT, sign up below!Disclosure: We have no position in PVCT and have not been compensated for this article.

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