Endocyte, Inc. (NASDAQ:ECYT)
Endocyte, Inc. (NASDAQ:ECYT) continues to power higher in the market on posting a narrower than expected Q1 2017 net loss of $11.7 million or $0.27 a share compared to Wall Street estimates of a net loss of $28 cents a share. Collaboration revenue in the quarter was flat at $0.012 million.
Q1 Financial Results
Increase in EC1169 Phase 1 trial expenses resulted in a 22.4% increase in research and development expenses that came in at $8 million. Endocyte has also attributed the increase to increased pre-clinical work, general research expenditure as well as expenses related to phase 1 trial of EC1456.
General and Administrative expenses dropped to $3.7 million from $3.8 million in the quarter attributed to a decrease in compensation expense. Endocyte finished the quarter with cash and cash equivalent of $127.6 million compared to $138.2 million as of December 31, 2016.
Endocyte, Inc. (NASDAQ:ECYT) is currently carrying out clinical trials for its two lead candidates EC1456 and EC1169. The company has already initiated an expansion study for EC1456 in select folate receptor-positive non-small-cell lung cancer patients. EC1169, on the other hand, is being evaluated in a phase 1 trial as a novel treatment for metastatic castration – resistant prostate cancer. Efficacy and safety data for the expansion of the two drugs will be reported soon according to chief executive officer, Mike Sherman.
“In addition, we continue to discover compelling applications of the SMDC platform and are working to more rapidly bring assets toward clinical development in several exciting areas, to drive more value from our pipeline. These include our dual-targeted DNA crosslinker drug that can attack both tumor-associated macrophages (TAMs) and cancer cells, EC2629, and our chimeric antigen receptor T-cell (CAR T-cell) SMDC adaptor platform,” said Mr. Sherman.
Endocyte, Inc. (NASDAQ:ECYT) has also confirmed it is nearing completion of preclinical work needed for Investigational New Drug application for EC2629. The novel treatment is the company’s first candidate that will target disease cells while also working on impacting tumor microenvironment by essentially shutting down tumors associated with macrophages.
The company is also continuing with work on its next generation CAR T-cell therapeutic platform in partnership with the Seattle Children’s Research institute.
Investors reacted positively to Endocyte, Inc. (NASDAQ:ECYT) posting earnings that beat Wall Street expectations. The stock was up by 15.54% ending the week at highs of $2.90 a share.
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.
About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.