Endocyte, Inc's CEO Discusses Second Quarter Results - Earnings Call Transcript

Endocyte, Inc (ECTY)

Q2 2012 Earnings Conference Call

August 2, 2012, 04:30 pm ET

Executives

Ron Ellis – CEO, President

Mike Sherman – CFO

Analysts

(Matt McCavaney) – Robert W Baird

Adnan Butt – RBC Capital Markets

Simos Simeonidis – Cowen and Company

Presentation

Operator

Welcome to Endocyte's conference call to discuss the company's second quarter 2012 financial results and business update. At this time, all participants are in a listen-only mode.

Speaking today will be Ron Ellis, President and CEO; and Mike Sherman, Chief Financial Officer. Following comments by Ron and Mike, we will open the lines for questions.

Please be advised that today's call is being recorded and webcast. During the conference call, the company may make predictive statements concerning future events or development such as their expectations for the EU regulatory filing, regulatory approvals, timing of clinical trial execution, clinical trial results and financial outlook.

Actual results may differ materially from those indicated by forward-looking statements due to a variety of risks and uncertainties. Please refer to Endocyte's filings with the Securities and Exchange Commission for a discussion of these risks and uncertainties.

Now let me turn the call over to Ron Ellis.

Ron Ellis

Thanks, everyone, for being on the call this afternoon. We'll have a brief just update on some milestones and then I'll have Mike Sherman go through the financials. As, first off, we announced this morning that we've secured additional supply of DOXIL from Janssen.

We had supply as we announced earlier to cover us for the clinical trial and the enrollment we had and we felt comfortable with that. This provides some more insurance cushion to handle more patients as we bring more sites online and give us just more cushion in terms of the DOXIL supply.

We right now believe we have plenty of supply to cover us through the end of the year and that's when we anticipate that DOXIL should be coming back online, according to announcements from Janssen or J&J.

We also point out that we've been working closely with Janssen on this supply purchase and they've recognized the importance of the PROCEED trial and will work with us to help us make sure we get as much stock that's available.

Second thing is the EU filing update. We continue to have good interactions and frequent interactions with the EU regulators. We have the vintafolide filing, which is EC145, ready to go.

We had some discussion recently with the EU where they have asked us to put all the filings in at one time. We were going to do them sequential but they have requested that they come in all at one time, both the imaging and the therapeutic filing.

And so we'll probably have all of those go in in the fourth quarter. It's not going to delay the review period at all. It's just a request by the EU to see – so that they don't have them come in one time period and one in the other. So we're anticipating the filing will happen this year and we'll have all applications go in at one time.

Ig uses another comment on Merck, we've been very happy with the interactions of Merck so far. There has been a lot of work in preparation for the EU filing as well as potential commercialization in EU.

We've been transitioning the manufacturing responsibilities for – of ertarfolatide or the EC145 to Merck. We're working with them on the new indications that they will be running besides the ovarian and lung study.

And we're appreciating, I guess, the immediate commercial horsepower of Merck as we work through launch plans and start to enhance KOL relationships. And so really – and also they have been spectacular as a partner to work with.

These things often have some tough starts as you go along but they have just been outstanding to work with on all fronts.

Of course, we've also announced that we've named David Meek as our Commercial Head. He's key to the interaction with Merck. We interviewed a number of candidates. We couldn't be happier with landing David. He is kind of the ideal person for this position. He has significant oncology experience.

He's spent the last three or four years in Europe with Novartis and so he'll have great insight into the first launch, which will be in the EU. He's had multiple global marketing and senior leadership sales positions and he was just very – I mean, we're very lucky to get someone of his caliber to come to Endocyte. We look forward to introducing him to – in the future of calls.

The other just update, I guess, is we've already announced, we've added a couple new board members to the board, Pete Meldrum and Marc Kozin. This is consistent with our plan to continue to build the right capabilities on the board as we transition from development into commercial phase of the company and accelerate our pipeline.

So those are the updates and key milestones. I'll let Mike go over the financials and then we'll take questions.

Mike Sherman

Thanks, Ron. This is the first quarter, of course, in which we'll recognize the accounting for the Merck collaboration, so I want to make sure we spend some time covering how that will show up on our financial statement. And more importantly I think you'll see how that collaboration really puts us in a very strong position from a financial standpoint.

Read the rest of this transcript for free on seekingalpha.com

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