It has been about a month since the last earnings report for Endocyte, Inc. . Shares have added about 3.5% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Endocyte Reports Wider-than-Expected Loss in Q4
Endocyte reported a fourth-quarter 2016 loss of $0.26 per share, wider than both the Zacks Consensus Estimate of a loss of $0.25 and the year-ago loss of $0. 23. Collaboration revenues, on the other hand, remained flat at $0.012 million during the quarter.
Quarterly Details
Research and development (R&D) expenses were up 28.2% year over year to $8.2 million, mainly due to increase in expenses related to the EC1169 phase I trial, including drug manufacturing expenses.
General and administrative expenses were down 13.9% to $3.1 million due to lower compensation expense.
Pipeline Update
Endocyte is focused on the development of two candidates, EC1456 and EC1169, of which both are currently in phase I studies.
The company has initiated the expansion phase of the study on EC1456 in select folate receptor-positive non-small cell lung cancer patients, identified by the companion imaging agent etarfolatide. A dose of 6.0 mg/m2 has been established as the maximum twice a week dose and is being used in the expansion phase of the study.
Patients included in this expansion phase of the trial will receive first-line chemotherapy and may also be treated with anti-PD-1 therapy. The company is also conducting an ovarian cancer surgical study to assess various attributes of the drug release within targeted tumors.
Meanwhile, EC1169 is being evaluated in a phase I study for metastatic castration-resistant prostate cancer (mCRPC). The company is currently enrolling patients in the expansion phase of the EC1169 trial in up to 50 second-line chemotherapy and up to 50 taxane-naïve metastatic castrate-resistant prostate cancer (mCRPC) patients at a maximum clinical once per week dose of 6.5 mg/m2.
Efficacy and safety data from the expansion cohorts for both EC1456 and EC1169 will be reported at medical conferences in the first half of 2017.
Moreover, the company is nearing completion of preclinical work required to file an Investigational New Drug (IND) application for EC2629, which is the company’s first candidate to target disease cells and simultaneously impact the tumor micro environment by shutting down tumors associated with macrophages. The company expects to file an IND for EC2629 by mid 2017.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There have been two upward revisions for the current quarter. In the past month, the consensus estimate also shifted upward by 10.8% due to these changes.
VGM Scores
At this time, Endocyte's stock has a subpar Growth Score of 'D', however its Momentum is doing a lot better with an 'A'. However, the stock was allocated a grade of 'F' on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
The stock is suitable solely for momentum based on our styles scores.
Outlook
Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Endocyte (ECYT) Up 3.5% Since Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Endocyte, Inc. . Shares have added about 3.5% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Endocyte Reports Wider-than-Expected Loss in Q4
Endocyte reported a fourth-quarter 2016 loss of $0.26 per share, wider than both the Zacks Consensus Estimate of a loss of $0.25 and the year-ago loss of $0. 23. Collaboration revenues, on the other hand, remained flat at $0.012 million during the quarter.
Quarterly Details
Research and development (R&D) expenses were up 28.2% year over year to $8.2 million, mainly due to increase in expenses related to the EC1169 phase I trial, including drug manufacturing expenses.
General and administrative expenses were down 13.9% to $3.1 million due to lower compensation expense.
Pipeline Update
Endocyte is focused on the development of two candidates, EC1456 and EC1169, of which both are currently in phase I studies.
The company has initiated the expansion phase of the study on EC1456 in select folate receptor-positive non-small cell lung cancer patients, identified by the companion imaging agent etarfolatide. A dose of 6.0 mg/m2 has been established as the maximum twice a week dose and is being used in the expansion phase of the study.
Patients included in this expansion phase of the trial will receive first-line chemotherapy and may also be treated with anti-PD-1 therapy. The company is also conducting an ovarian cancer surgical study to assess various attributes of the drug release within targeted tumors.
Meanwhile, EC1169 is being evaluated in a phase I study for metastatic castration-resistant prostate cancer (mCRPC). The company is currently enrolling patients in the expansion phase of the EC1169 trial in up to 50 second-line chemotherapy and up to 50 taxane-naïve metastatic castrate-resistant prostate cancer (mCRPC) patients at a maximum clinical once per week dose of 6.5 mg/m2.
Efficacy and safety data from the expansion cohorts for both EC1456 and EC1169 will be reported at medical conferences in the first half of 2017.
Moreover, the company is nearing completion of preclinical work required to file an Investigational New Drug (IND) application for EC2629, which is the company’s first candidate to target disease cells and simultaneously impact the tumor micro environment by shutting down tumors associated with macrophages. The company expects to file an IND for EC2629 by mid 2017.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There have been two upward revisions for the current quarter. In the past month, the consensus estimate also shifted upward by 10.8% due to these changes.
Endocyte, Inc. Price and Consensus
Endocyte, Inc. Price and Consensus | Endocyte, Inc. Quote
VGM Scores
At this time, Endocyte's stock has a subpar Growth Score of 'D', however its Momentum is doing a lot better with an 'A'. However, the stock was allocated a grade of 'F' on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
The stock is suitable solely for momentum based on our styles scores.
Outlook
Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.