Endocyte, Inc. (NASDAQ: ECYT) is having an incredibly strong day in the market this morning, and for good reason. The company announced that it has signed an exclusive worldwide license agreement, causing excitement among investors and sending the stock skyrocketing. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:41), ECYT is trading at $2.68 per share after a gain of $1.28 per share (90.43%) thus far today.
ECYT Gains On Worldwide License Agreement
As mentioned above, Endocyte is having a strong day in the market today after the company announced the completion of an exclusive worldwide license of PSMA-617 from ABX GmbH. The company said that it intends to move quickly into a Phase 3 clinical trial of 177Lu-PSMA-617. The treatment is a radioligand therapeutic that’s designed to target the protate-specific membrane antigen present in about 80% of patients with metastatic castration-resistant prostate cancer. In a statement, Mike Sherman, President and CEO at ECYT, had the following to offer:
“This transaction is transformational to Endocyte, accelerating our path to commercialization. 177Lu-PSMA-617 has the potential to be the first-in-class RLT to address both bone and soft tissue disease, and it is profoundly important to the many patients suffering from mCRPC… Our experience with PSMA targeting and companion imaging development, in addition to our relationships with distinguished prostate cancer investigators from around the world, uniquely position Endocyte to lead this therapy to registration. We intend to seek regulatory approval to initiate a Phase 3 registration trial of 177Lu-PSMA-617 in early 2018. By focusing the company’s resources on the execution of this program, we project trial completion as early as 2020.
Endocyte remains strongly committed to careful expense management and maintaining a strong balance sheet. With the exception of a very targeted effort to generate proof-of-concept data for our CAR T-cell program, we will focus our resources on the development of 177Lu-PSMA-617. We will explore out-licensing opportunities for all other development programs.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ECYT. In particular, we’re interested in following the development of 177LU-PSMA-617. We’re also interested in following the plans to license out other development projects within the company’s pipeline, as this could lead to further revenue growth as well. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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