IBJNews

Endocyte files to sell up to $60M in new stock

Back to TopCommentsE-mailPrintBookmark and Share

Endocyte Inc. plans to raise as much as $60 million by offering new shares to the public “from time to time,” the drug development firm announced this month.

West Lafayette-based Endocyte will use the money to fund its research and development, as it extends its targeted-drug technology to more diseases, the firm disclosed in a prospectus filed Dec. 23 with the U.S. Securities & Exchange Commission.

Endocyte on Dec. 16 announced the launch of a clinical trial for a new drug—one the company will fund by itself. The development of Endocyte’s other experimental drug has, so far, been paid for by its partner, New Jersey-based Merck & Co. Inc.—to the tune of $58 million this year.

The news of the stock sale comes as Endocyte is on the cusp of receiving market approval for its first drug. Analysts expect European regulators to give the green light to vintafolide, Endocyte’s drug for ovarian cancer, in late January, allowing for the drug’s launch as early as the second half of 2014.

“With a January decision expected, we think this name is worth a hard look,” wrote Baird Equity Research analyst Christopher Raymond in a November note to investors.

If approved, vintafolide would be marketed by Merck. Endocyte will receive royalties from Merck, and will also directly sell a companion imaging agent, called EC20.

Wedbush Securities analyst Gregory Wade expects a late 2014 launch that will bring Endocyte nearly $1.5 million in revenue next year. He expects Endocyte’s product revenue to ramp up to $92 million in 2016, when he expects vintafolide to hit the U.S. market.

RBC Capital Markets analyst Adnan Butt expects both a European and a U.S. launch in 2015, with Endocyte’s revenue totaling $98 million in 2016. Raymond, the Baird analyst, also expects a 2015 launch in both Europe and the United States. He predicts Endocyte will reap $120 million in revenue by 2016.

What excites analysts about Endocyte is that it is using the same base technology to attack multiple kinds of cancer and to develop multiple drugs. For example, Endocyte is developing vintafolide to treat non-small-cell lung cancer. If approved, that indication by itself could bring $70 million in revenue in 2018, Wade predicts.

Also, Endocyte and Merck are studying vintafolide as a treatment in breast cancer patients. The companies announced earlier this month the launch of a new Phase 2 clinical trial in breast cancer patients.

Also earlier this month, Endocyte began a Phase 1 clinical trial to use another drug, known as EC1456, to treat solid tumors.

All those tests use Endocyte’s imaging agent, EC20, to identify cancer and tumor patients that have cells that are set up to bind aggressively with the vitamin folate. Endocyte’s drugs are then attached to folate molecules so that they deliver a potent drug payload while avoiding the side effects so common with older chemotherapy treatments.

Endocyte went public in 2011, raising $145 million in two public offerings.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. How much you wanna bet, that 70% of the jobs created there (after construction) are minimum wage? And Harvey is correct, the vast majority of residents in this project will drive to their jobs, and to think otherwise, is like Harvey says, a pipe dream. Someone working at a restaurant or retail store will not be able to afford living there. What ever happened to people who wanted to build buildings, paying for it themselves? Not a fan of these tax deals.

  2. Uh, no GeorgeP. The project is supposed to bring on 1,000 jobs and those people along with the people that will be living in the new residential will be driving to their jobs. The walkable stuff is a pipe dream. Besides, walkable is defined as having all daily necessities within 1/2 mile. That's not the case here. Never will be.

  3. Brad is on to something there. The merger of the Formula E and IndyCar Series would give IndyCar access to International markets and Formula E access the Indianapolis 500, not to mention some other events in the USA. Maybe after 2016 but before the new Dallara is rolled out for 2018. This give IndyCar two more seasons to run the DW12 and Formula E to get charged up, pun intended. Then shock the racing world, pun intended, but making the 101st Indianapolis 500 a stellar, groundbreaking event: The first all-electric Indy 500, and use that platform to promote the future of the sport.

  4. No, HarveyF, the exact opposite. Greater density and closeness to retail and everyday necessities reduces traffic. When one has to drive miles for necessities, all those cars are on the roads for many miles. When reasonable density is built, low rise in this case, in the middle of a thriving retail area, one has to drive far less, actually reducing the number of cars on the road.

  5. The Indy Star announced today the appointment of a new Beverage Reporter! So instead of insightful reports on Indy pro sports and Indiana college teams, you now get to read stories about the 432nd new brewery open or some obscure Hoosier winery winning a county fair blue ribbon. Yep, that's the coverage we Star readers crave. Not.

ADVERTISEMENT