Endocyte, Inc. (NASDAQ:ECYT) Spikes On Prostate Cancer Deal

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.

Endocyte, Inc. (NASDAQ:ECYT)

PSMA-617 License

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.

Endocyte Restructuring

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.

Don’t miss out! Stay informed on $ECYT and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

Endocyte, Inc. (NASDAQ:ECYT) Signs Licensing Agreement

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, Inc. (NASDAQ:ECYT)

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 Prospects

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.

Don’t miss out! Stay informed on $ECYT and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

Endocyte, Inc. (NASDAQ:ECYT) Craters On News Of Workforce Reduction And Drug Programs Suspension

Endocyte, Inc. (NASDAQ:ECYT)

Endocyte, Inc. (NASDAQ:ECYT) continues to elicit strong selling pressure in the market after its long-term prospects have been questioned. Fuelling the selling pressure is confirmation that the cancer company is set to carry out a major restructuring that will significantly affect ongoing drug programs.

Strategic Restructuring

The developer of targeted therapies for the treatment of cancer and other serious diseases says it will lay off nearly half of its employees as part of a cost-saving drive. A 40% workforce reduction will result in 47 employees losing their jobs. The company has confirmed plans to set up a severance program for affected employees as it moves to complete the third quarter reduction.

Endocyte, Inc. (NASDAQ:ECYT) is anticipating $2.4 million in restructuring costs of which $1.1 million will be used to cover benefits and severance. Fixed asset impairment charges should total $0.3 million in addition to $1 million being used to cover clinical termination charges.

Clinical Programs Uncertainty

The company has also reiterated plans to end patient enrollment in one of its trial programs – something that has not gone well with investors.

“Endocyte, Inc. (the “Company”) is implementing a strategic restructuring to focus on an updated business plan. Based on safety and efficacy data, the Company is stopping enrollment in the EC1456 trial, but will continue to enroll a small number of patients in the EC1456 ovarian cancer surgical study to gain additional insight to inform the development of future small molecule drug conjugates (SMDCs),”said the company in an 8-K filing.

The company is also planning to pare down the number of patients in EC1169, which is being investigated as a novel treatment for prostate cancer. A reduction in some trials, according to the biopharmaceutical company, should result in the refocusing of efforts on CAR-T and dual targeted DNA crosslinker trials.

Endocyte, Inc. (NASDAQ:ECYT) has since revised its full year guidance in view of the upcoming strategic restructuring. The company expects its cash balance for the full year to be around $105 million.

A once high-flying stock, Endocyte, Inc. (NASDAQ:ECYT) continues to lose ground in the after its lead candidate drug, vintafolide, posted poor results in its Phase 3 test for ovarian cancer. A wider than expected net loss of (-$11.5) million for Q1 2017 compared to (-$10.2) million last year has all but dented its sentiments in the Street.

The stock was down yet again in Friday’s trading session, shedding 30.04% to end the week at $1.91 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.

Don’t miss out! Stay informed on $ECYT and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

Endocyte, Inc. (NASDAQ:ECYT) Misses But Shares Rise

Endocyte, Inc. (NASDAQ:ECYT)

This morning Endocyte, Inc. (NASDAQ:ECYT) announced Q4 financial results ending December 31, 2016. The biotech company also provided a clinical update. Indiana-based Endocyte develops treatments for cancer and inflammatory diseases using proprietary technology to create “small molecule drug conjugates” (SMDCs). They have collaboration agreements with the Purdue Research Foundation and a Master License Agreement with Merck Sharp & Dohme Research GmbH.

For Q4 2016, Endocyte, Inc. (NASDAQ:ECYT) reported a net loss of $11.1 million and an EPS loss of ($0.26) which was $0.01 worse than analyst expectations. In Q4, 2016 the company reported a net loss of $9.8 million and an EPS loss of ($0.23). Shares have responded by gaining over 10% in the pre-market and have reached $2.55.

Endocyte, Inc. (NASDAQ:ECYT) Pipeline

2017 Clinical Update
  • Endocyte will be providing a safety and efficacy update for product candidates EC1169 and EC1456 from their ongoing clinical trial at the Annual Meeting of the American Society of Clinical Oncology in June.
  • The company, sometime in the first half of 2017, will update and complete the pre-clinical data for their CAR T-cell program.
  • Endocyte will commence enrollment for the Phase 1 trial of product candidate EC 2629 in the second half of the year.

Three analysts cover Endocyte, Inc. (NASDAQ:ECYT). Two rate the shares a “Strong Buy” and one rates ECYT shares a “Hold”. ECYT is trading above it 20 and 50-day moving averages but 15% below its 200-day moving averages. The 52-week high for ECYT is $4.33 and the low is $1.86. ECYT shares gained over 6% in the past month but are down over 10% YTD.

3/10/2017
Ticker Symbol ECYT
Last Price a/o 8:39 AM EST  $                      2.50
Average Volume                    228,000
Market Cap (mlns)  $                    95.94
Sales (mlns) $0.07
Shares Outstanding (mlns) 42.26
Share Float (mlns) 41.09
Shortable Yes
Optionable Yes
Inside Ownership 1.60%
Short Float 3.55%
Short Interest Ratio 6.4
Quarterly Return -17.75%
YTD Return -10.98%
Year Return -36.24%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy. 

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.