Boston, MA 06/19/2014 (wallstreetpr) – Endocyte, Inc. (NASDAQ:ECYT) and Merck & Co., Inc. (NYSE:MRK) the two global health companies were working together on cancer therapy vintafolide. But now Merck will no longer be the part of the investigation. It has returned all the rights to cancer drug to Endocyte. European Regulators have given its conditional approval for the drug in March. Endocyte is not having a good time on the street right from the start of the year. The news of Merck leaving the project affected the stock price, leading to a fall of more than 13%.
The reasons for breakup
Endocyte, Inc. (NASDAQ:ECYT) and Merck were conducting a clinical trial of the cancer drug in the patients of ovarian cancer. However, the study failed shows any positive results. The drug was not working on the patients. There was no respite seen in the patients from the combination of vintafolide and chemotherapy. Seeing the failure, Merck decided to leave the investigation. Now Endocyte will have all the right to the experimental drug.
It is a great jolt for Endocyte to handle the investigation alone. As Merck will no longer be a part of the development, Endocyte can face the financial problems to conduct the additional trials. It will also not have the support of the experienced sales staff in the future sales process. Endocyte has to find the solutions of both the problems.
The future plans
Now when the experimental drug has failed to show any positive results in the treatment of Ovarian Cancer, Endocyte will opt for the experimenting the drug for the treatment of lung cancer. Endocyte, Inc. (NASDAQ:ECYT) has already conducted a mid-stage study in patients suffering from non-small cell lung cancer. The data of the trial will be presented in a scientific meeting later this year. It remains to be seen what the drug can do in the lung cancer treatment. If it succeeds then, it can cover up the huge investigation costs of the company in the future.
