General and administrative expenses were $5.0 million for the fourth quarter of 2012, compared to $2.9 million for the same period in 2011. The increase in expenses was attributable to establishing commercial capability and an increase in compensation expenses.

Interest expense was $0 million in the fourth quarter of 2012 compared to $0.4 million in the same period in 2011. The company retired its credit facility in the second quarter of 2012 and the average debt balance was $12.9 million in the fourth quarter of 2011.

Cash, cash equivalents and investments were $201.4 million at Dec. 31, 2012, compared to $204.7 million at Sep. 30, 2012 and $128.1 million at Dec. 31, 2011. The increase compared to Dec. 31, 2011 was attributable to the upfront payment from Merck of $120.0 million, the $5.0 million milestone payment from Merck in the current quarter for the MAA filing and Merck's reimbursement of certain research and development expenses, which was partially offset by the cash disbursements for operations and the repayment of the outstanding balance on the credit facility.

Financial Guidance

Endocyte expects that its cash, cash equivalents and investments will be between $145.0 - $160.0 million at Dec. 31, 2013.

Endocyte expects 2013 expenses, net of Merck reimbursements, of approximately $65.0 million. The increase in spending supports the following objectives:
  • Pre-launch expenses in preparation of a potential approval of vintafolide and etarfolatide in Europe
  • Higher enrollment in the PROCEED study
  • Increase in development expenses to support two new products expected to enter the clinic

"Our disciplined expense management, combined with the Merck partnership, allowed us to build a very secure financial base during 2012," stated Mike Sherman, Endocyte's chief financial officer. "In 2013 we expect to invest in building value for Endocyte, pursuing key initiatives including expanding our commercial capability in anticipation of potential EU approval, conducting the PROCEED trial, and advancing development of new SMDCs."

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