) shares fell 4.8% following the announcement of its intention to
issue shares and the pricing of the underwritten public offering
of its common stock. The company is looking to issue 4.5 million
shares at $21 per share. Endocyte expects gross proceeds of $94.5
million through this offering. The offering will lead to dilution
of the shareholder base.
The underwriters have been granted an option to purchase up to
675,000 shares with a 30-day window to do so.
Endocyte intends to utilize the funds raised from the issuance
of shares for working capital, capital expenditure, research and
development expenses, clinical trial costs and general and
administrative expenses. Cash, cash equivalents and investments
at the end of Dec 31, 2013 were roughly $148.9 million.
We note that Endocyteshares surged 92.4% last week with the
phase IIb TARGET study evaluating Vynfinit (vintafolide) in
non-small cell lung cancer (NSCLC) patients met its primary
endpoint of improved progression free survival. So, the current
fall may also include market adjustments.
Endocyte is focused on developing its pipeline. Endocyte
expects mature overall survival data from the TARGET study by the
end of 2014. Endocyte and partner
& Co. Inc.
) gained a positive opinion in the EU from the Committee for
Medicinal Products for Human Use (CHMP) for Vynfinit and
companion imaging components (Folcepri and Neocepri) for the
treatment of adult patients with FR-positive, platinum-resistant,
ovarian cancer, in combination with pegylated liposomal
doxorubicin (PLD). Conditional approval should be granted within
two or three months, which will trigger a milestone payment of
$12.5 million to Endocyte.
Endocyte and Merck will initiate a phase II randomized trial
on Vynfinit in FR-positive triple negative breast cancer in April
or early summer this year.
Endocyte carries a Zacks Rank #3 (Hold). Investors looking for
a better stock may consider companies like
), both of which carry a Zacks Rank #1 (Strong Buy).
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