Preparing for Potential Commercialization in Europe and Expanding SMDC Pipeline
Conference call today at 4:30 p.m. EDT
WEST LAFAYETTE, Ind., May 2, 2013 (GLOBE NEWSWIRE) -- Endocyte, Inc. (Nasdaq:ECYT), a biopharmaceutical company developing targeted small molecule drug conjugates (SMDCs) and companion imaging diagnostics for personalized therapy in cancer and other serious diseases, today announced financial results for the first quarter ending March 31, 2013, and provided a business update."Enrollment for the PROCEED and TARGET trials for vintafolide and etarfolatide continued on schedule during the first quarter, and we began to establish a strong commercial presence in Europe in anticipation of potential EU approval at the end of the year," said Ron Ellis, Endocyte's president and chief executive officer. "We are encouraged by the progression of our robust pipeline, based on our unique targeted approach to drug development," Ron Ellis added. "That includes a recent presentation of the first clinical data to demonstrate the involvement of activated macrophage cells in osteoarthritis. We have demonstrated the ability to target this cell in numerous inflammatory indications and are preparing both the imaging diagnostic and therapeutic drug candidates for the clinical study next year. We also have been preparing our folate-targeted tubulysin drug candidate EC1456 to enter the clinic. We are completing the pre-clinical studies and expect to begin that Phase 1 trial in the third quarter." First Quarter 2013 Financial Results Endocyte reported a net loss of $3.9 million, or $0.11 per basic and diluted share for the first quarter of 2013, compared to a net loss of $9.8 million, or $0.27 per basic and diluted share, for the same period in 2012. Revenue was $14.5 million for the first quarter of 2013 associated with the collaboration with Merck. Of this revenue, $13.0 million related to the amortization of the $120.0 million upfront license payment, the $5.0 million milestone payment received related to the marketing authorization application (MAA) filings in the EU during the fourth quarter of 2012, and the $13.6 million in reimbursable research and development expenditures incurred prior to the first quarter of 2013. The remaining $1.5 million of revenue related to amortization of reimbursable research and development expenditures incurred during the first quarter of 2013. The amortization for both the upfront license fee and ongoing research and development services is recognized as revenue ratably over a performance period that began at the closing date of the agreement, April 27, 2012, and is expected to conclude at the end of 2014.