Boston, MA 05/02/2014 (wallstreetpr) – Endocyte, Inc. (NASDAQ:ECYT) fell the most in three years following halt in its ovarian cancer treating drug analysis.
The company’s shares fell 63% after its cancer drug’s trail was stopped because of failure to help patients. The drug trail was being conducted with the help of Merck & Co., Inc. (NYSE:MRK). In a late stage trail, the drug, vintafolide, failed to demonstrate efficacy in treating patients having platinum resistant cancer. The study was stopped in Phase III, the company announced in a statement today.
The West Lafayette, Indiana based company fell as much as 62%, down to $6.65 in the early hours of trading. This is Endocyte’s deepest intraday fall since Dec 2011. Merck, which enjoyed rights to sell the drug, also fell 1.3% and reached $58.87.
Next Study
Endocyte, Inc. (NASDAQ:ECYT), however, seeks to continue with the trail of vintafolide for lung cancer treatment, a late phase study results for which is due by the end of 2014. In this context, an analyst for RBC Capital Markets, Adnan butt, said that the company’s lung cancer trail of the drug is more important as the market for the treatment is bigger as compared to that for ovarian cancer. He further said that it was quite unexpected for the trail to stop at Phase II trial. This is because of the promising results the drug had earlier demonstrated for study of non small cell lung cancer as well as other studies. Butt believes that until Endocyte, Inc. (NASDAQ:ECYT) comes up with the data for the lung cancer study, its share prices will be overpenalized.
Merck May Withdraw
In a conference call with investors, Endocyte, Inc. (NASDAQ:ECYT)’s management announced that the participating Whitehouse Station, New Jersey based company Merck may opt to withdraw support in the next study. A final and confirming decision, nevertheless, is due to be informed after the company has reviewed full data.
