Endocyte, Inc. (NASDAQ:ECYT)
The stock price of Endocyte, Inc. (NASDAQ:ECYT) more than doubled in value after the biopharmaceutical company announced the completion of a licensing agreement with ABX for a Phase 3 ready prostate cancer drug. The stock was up by 157.5% in Monday’s trading session, to end the day at $3.63 a share.
The rally helped reverse a strong selling pressure that had pushed the stock to multi-year lows. ECYT has since recorded a new 52-week high of $3.75, waiting to see if it will continue to rise. The stock is also up by more than 20% for the year after gapping higher in Monday’s trading session.
Endocyte-ABX Licensing Agreement
Under the terms of the licensing agreement, Endocyte, Inc. (NASDAQ:ECYT) owns exclusive worldwide rights for the development and commercialization of the prostate cancer candidate drug 177PSMA-617. The biopharmaceutical company is also to make an upfront payment of $12 million to ABX.
Endocyte, Inc. (NASDAQ:ECYT) has also agreed to grant ABX 2 million shares of its common stock and warrants for the purchase of up to 4 million additional shares. ABX is also entitled to regulatory and commercial milestones payments totaling up to $160 million.
Lu-PSMA-617 is a radioligand designed to target the prostate-specific membrane antigen present in 80% of patients with metastatic castration-resistant prostate cancer. According to the Chief Executive Officer, Mike Sherman, the candidate drug has the potential to be the first in class RLT, for addressing both bone and soft tissue disease.
The drug has already shown a remarkable 57% PSA response rate. The studies show the drug to be well tolerated with low rates of adverse effects and no renal toxicity.
“We intend to seek regulatory approval to initiate a Phase 3 registration trial of 177Lu-PSMA-617 in early 2018. By focusing the company’s resources on the execution of this program, we project trial completion as early as 2020,” said Mr. Sherman.
First developed at the DFKZ (German Cancer Research Center), PSMA-617 has so far been evaluated in hundreds of patients through both compassionate and prospective trials. Preliminary clinical trial results indicate that the drug has the potential to be a promising target in prostate cancer especially in areas where the disease has become resistant to current therapies.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.