Endocyte, Inc. (NASDAQ:ECYT)
Endocyte, Inc. (NASDAQ:ECYT) shares gained 0.58% in Tuesday’s trading session as the stock continues to gain significant strength. Renewed investor confidence in the company follows the signing of a licensing deal for a prostate cancer candidate that represents a potential $1 billion market opportunity.
The biopharmaceutical company stock is up by more than 300% for the month as investors continue to react to the exclusive worldwide license for PSMA-617 from ABX GmbH. The deal provides Endocyte with an advanced therapy for the treatment of prostate cancer.
Endocyte, Inc. (NASDAQ:ECYT) is currently rated as a ‘buy’ by one investment firm according to data compiled by Zack Investment Research. One firm also rates the stock as a ‘hold’.
Under the terms of the deal, Endocyte is to make a $12 million upfront payment and issue 2 million shares of its common stock. ABX is also entitled to warrants for the purchase of up to 4 million additional shares. The company could also earn up to $160 million in milestone payments and tiered royalties.
“This transaction is transformational to Endocyte, accelerating our path to commercialization. 177Lu-PSMA-617 has the potential to be the first-in-class RLT to address both bone and soft tissue disease, and it is profoundly important to the many patients suffering from mCRPC,” said Mike Sherman, President, and CEO of Endocyte.
The candidate drug is a radioligand therapeutic, designed to target the prostate-specific membrane antigen that is present in about 80% of patients suffering from metastatic castration-resistant prostate cancer. Endocyte plans to initiate a Phase 3 trial of the drug in the first half of next year with completion slated for 2020.
The acquisition of worldwide rights follows the company’s June announcement that the company was focused on more valuable opportunities. A shift of focus into promising programs such as CAR T-cell SMDC adaptor platform has already come into play.
Endocyte, Inc. (NASDAQ:ECYT) is also working on EC1169 for the treatment of metastatic castration-resistant prostate cancer. It has also stopped enrollment in EC1456 trial after the program failed to achieve significant clinical activity necessary for continued advancements.
“Endocyte remains strongly committed to careful expense management and maintaining a strong balance sheet. With the exception of a very targeted effort to generate proof-of-concept data for our CAR T-cell program, we will focus our resources on the development of 177Lu-PSMA-617,” said Mr. Sherman.
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.