Endocyte's stock rockets again on heavy volume after license deal for prostate cancer treatment
Shares if Endocyte Inc. (ECYT) rocketed 49% on heavy volume Tuesday, and have not run up nearly four-fold this week, after the biopharmaceutical company announced a license agreement with ABX GmbH for a phase-3 ready treatment for prostrate cancer. Trading volume was 54.8 million shares in afternoon trade, enough to make the stock the most actively traded on the Nasdaq exchange. On Monday, the stock blasted off 157.5% on volume of 55.9 million shares. Under terms of the agreement, Endocyte has exclusive worldwide rights to develop and commercialize PSMA-617, in exchange for a $12 million upfront payment to ABX and potential milestone payments of up to $160 million. In addition, Endocyte has issued 2 million shares of its stock to ABX and issued a warrant for the purchase of up to 4 million additional shares. "This transaction is transformational to Endocyte, accelerating out path to commercialization," said Chief Executive Mike Sherman. "We intend to seek regulatory approval to initiate a Phase 3 registration trial of Lu-PSMA-617 in early 2018." The stock has now more than doubled year to date, while the iShares Nasdaq Biotechnology ETF (IBB) has rallied 27% and the S&P 500 has gained 13%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires