Personal Finance

Why Endocyte Stock Is on the Move Today

A scientist in blue gloves preparing samples in front of a microscope.

What happened

Shares of the clinical-stage biotech Endocyte (NASDAQ: ECYT) are on the move yet again today on heavier than normal volume. The company's shares are up by a healthy 12.28% as of 12:07 p.m. EST.

Interestingly enough, Endocyte's shares are up on no apparent news today, which is turning into a common occurrence for this small-cap biotech.

A scientist in blue gloves preparing samples in front of a microscope.

Image source: Getty Images.

So what

Endocyte's stock has presumably been heating up this year due to the strong mid-stage data for the company's advanced prostate cancer drug, Lu-PSMA-617. These data reportedly led to a successful end-of-phase 2 meeting with U.S. regulators that paved the way for an all-important registrational trial. This next trial, known as "Vision," is scheduled to begin enrolling patients this quarter.

The key issue is that the company thinks Lu-PSMA-617 would likely compare favorably to the current cohort of later-line prostate cancer drugs based on its emerging clinical profile. So, even as a treatment of last resort, Endocyte thinks that Lu-PSMA-617 would still be able to generate several hundred million dollars in annual sales.

Now what

Endocyte's market cap has appreciated by a whopping 177% since the start of the year -- easily making it one of the best-performing biotechs during the first quarter of 2018.

Can Endocyte keep up this torrid pace? The good news is that the company did take care of its short-term capital needs with a recent secondary offering that yielded $80.6 million in net proceeds.

The bad news is that Endocyte is still a few years away from a regulatory filing of any kind. So, this recent capital raise certainly won't be the last, especially since the company is looking at increasing its capital outflows by expanding into the adoptive cell therapy arena later this year.

In the short term, however, the market appears more than to content to continue pushing Endocyte's value higher now that it has a valuable pivotal stage cancer asset under development.

10 stocks we like better than Endocyte

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Endocyte wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of March 5, 2018

George Budwell has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Stocks

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More