Boston, MA 03/24/2014 (wallstreetpr) – Endocyte, Inc. (NASDAQ:ECYT) was soaked in a lot of positive news last week. First, the company announced positive mid-stage trial results for its lung cancer drug Vynfinit, raising hopes on the company’s pipeline. Also, the European Union regulators recommended adoption of Vynfinit for the treatment of ovarian cancer.
The positive trial report and the recommendation from the EU panel helped the stock to attain new historic price during Friday session. Shares closed at $28.17, up 92.42 percent in the previous session. Earlier on the day shares shot to a new 52-week high at $33.70, on day that saw a huge volume of shares changing hands than in a normal session.
While Vynfinit still has other trial stages to cover before attaining full approval for adoption in treatment of lung cancer, the EU regulators recommendation might bring immediate revenue for the company. Thus, we take a closer look at the recommendation of Vynfinit by EU regulators and how soon it can translate into revenue for Endocyte.
Treatment of ovarian cancer
EU regulators are clearly convinced that Vynfinit can bring breakthrough in dealing with ovarian cancer in adult women. However, the drug will be recommended for use on patients whose condition is not responding to the available therapies. The panel of EU regulators also recommended two imaging agents to help in the identification of eligible patients.
The EU panel is expected to make final decision on the adoption of Vynfinit or vintafolide for treatment of ovarian cancer within three months, which means around June or July this year. And if approval is obtained, the drug will start shipping shortly after.
Partnership and opportunity
Endocyte, Inc. (NASDAQ:ECYT) and Merck & Co. Inc (NYSE:MRK) announced partnership in April 2012. As part of the partnership agreement, Merck which has already paid $120 million upfront to Endocyte, will pay more than $1 billion to Endocyte if Vynfinit gets approved for treatment of multiple forms of cancer.
Conclusion
Analysts at Cowen and Co. rate the stock of Endocyte, Inc. (NASDAQ:ECYT) at “outperform”.
