Endocyte (ECYT) Reports Wider-Than-Estimated Loss in Q4

Endocyte, Inc. ECYT incurred a loss of 18 cents per share in fourth-quarter 2017 wider than the Zacks Consensus Estimate of a loss of 16 cents. The figure was wider than the year-ago loss of 26 cents.

In September 2017, the company acquired exclusive worldwide rights to develop and commercialize PSMA-617 including the product candidate known as ¹⁷⁷Lu-PSMA-617 from ABX GmbH. ¹⁷⁷Lu-PSMA-617 is a first-in-class radioligand therapeutic (RLT) that targets prostate-specific membrane antigen (“PSMA”).

Over a year, Endocyte’s shares have rallied 97.6%, outperforming the industry’s gain of 0.4%.

Quarterly Details

Research and development (R&D) expenses declined 37.4% year over year to $5.2 million courtesy of the workforce reduction as part of the company’s restructuring plan, lower trial and manufacturing costs for EC1456, lower pre-clinical general research costs and a decrease in manufacturing expense for EC1169.

General and administrative expenses increased 19.8% year over year at $3.7 million due to higher legal and professional costs and an increase in compensation expense, including stock compensation expense.

During the quarter, the company finalized a phase III VISION trial design for¹⁷⁷Lu-PSMA-617 following a successful End of Phase II meeting with the FDA. The trial will include two interim assessments of efficacy, which could potentially lead to an early approval for ¹⁷⁷Lu-PSMA-617. The VISION trial is a phase III study of ¹⁷⁷Lu-PSMA-617 for the treatment of patients with PSMA-positive metastatic castration-resistant prostate cancer, who have received at least one novel androgen axis drug and at least one taxane regimen. The primary endpoint of the study will be overall survival. Enrollment of the trial is expected to begin in second-quarter 2018 and is expected to be completed within 18-24 months.

Endocyte also entered into an agreement with ITM Isotopen Technologien München AG (“ITM”), a specialized radiopharmaceutical company, where the latter will provide clinical supply of no-carrier-added Lutetium for the manufacturing of ¹⁷⁷Lu-PSMA-617.

In order to ensure the success of its VISION study, Endocyte added clinical trial professionals to the team. Caryn Barnett and Theresa Bruce both seasoned leaders with strong track records of executing late stage oncology development programs joined the company’s team.

Endocyte also finalized plans for the clinical development of adaptor-controlled CAR T-cell therapy in patients with osteosarcoma in fourth-quarter 2018.

2017 Results

For 2017, the company reported a loss of $1.25 per share wider than the loss of $1.04 in 2016. The loss is wider than the Zacks Consensus loss estimate of $1.24.

Endocyte, Inc. Price, Consensus and EPS Surprise

Zacks Rank & Stocks to Consider

Endocyte carries a Zacks Rank #3 (Hold).

A few better-ranked stocks from the same space are Regeneron REGN, Exelixis EXEL and Enanta Pharma ENTA. While Regeneronsports a Zacks Rank #1 (Strong Buy), Exelixis and Enanta Pharma carry a Zacks Rank #2 (Buy), each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Regeneron’s earnings per share estimates have moved up from $17.13 to $18.65 and from $20.38 to $21.56 for 2018 and 2019 respectively in the last 30 days. The company pulled off a positive earnings surprise in three of the last four quarters, with an average beat of 9.15%.

Exelixis’ earnings per share estimates have moved up from 73 cents to 77 cents for 2018 in the last 60 days. The company delivered a positive earnings surprise in the last four quarters, with an average beat of 572.92%. Share price of the company moved up 27.8% over a year.

Enanta Pharma delivered a positive earnings surprise in three of the last four quarters, with an average beat of 373.1%. Share price of the company surged 166.8% over a year

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