A month has gone by since the last earnings report for Endocyte, Inc. . Shares have lost about 37.9% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Endocyte Reports Narrower-than-Expected Loss in Q1
Endocyte reported a loss of $0.27 per share in first-quarter 2017, narrower than the Zacks Consensus Estimate of a loss of $0.28 but wider than the year-ago loss of $0.24. 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 22.4% year over year to $8.0 million mainly due to increase in expenses related to the EC1169 phase I trial, including drug manufacturing expenses, expenses related to the development of EC2629 and other pre-clinical work and general research, and expenses related to the EC1456 phase 1 trial.
General and administrative expenses were down 1.9% to $3.7 million due to lower compensation expense.
Pipeline Update
Endocyte is focused on the development of two candidates, EC1456 and EC1169, both of which are in phase I studies currently.
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 portion of 6.0 mg/m2 has been determined as the maximum twice-a-week dose and is being used in the expansion phase of the study. The company is enrolling patients in the expansion cohort of up to 40 folate receptor-positive (FR-positive) NSCLC patients, as determined by an etarfolatide scan, to obtain 6.0 mg/m2 twice a week. The patients included in this expansion phase of the trial will receive first-line chemotherapy and will be treated with anti-programmed death-1 (anti-PD-1) therapy. In addition, Endocyte is conducting an ovarian cancer surgical study to characterize EC1456 at the tumor level through a multifaceted analysis of collected tissue samples after administration of the drug.
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 a week dose of 6.5 mg/m2.
Efficacy and safety data from the expansion cohorts for both EC1456 and EC1169 will be reported in medical conferences in the first half of 2017.
The company is also nearing the completion of pre-clinical 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 microenvironment by shutting down tumors associated with macrophages. The company expects to file an IND for EC2629 by mid 2017. The company also continues to progress with next-generation CAR T-cell therapeutic platform, in collaboration with Seattle Children's Research Institute.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
Endocyte, Inc. Price and Consensus
VGM Scores
Currently, Endocyte's stock has a poor Growth Score of 'F', 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 company's stock is suitable solely for momentum investors based on our style scores.
Outlook
The Zacks Consensus Estmate moved higher over the last 30 days. The stock has a Zacks Rank #2 (Buy). We are expecting an above average return from the stock in the next few months.
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Why Is Endocyte (ECYT) Down 37.9% Since the Last Earnings Report?
A month has gone by since the last earnings report for Endocyte, Inc. . Shares have lost about 37.9% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Endocyte Reports Narrower-than-Expected Loss in Q1
Endocyte reported a loss of $0.27 per share in first-quarter 2017, narrower than the Zacks Consensus Estimate of a loss of $0.28 but wider than the year-ago loss of $0.24. 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 22.4% year over year to $8.0 million mainly due to increase in expenses related to the EC1169 phase I trial, including drug manufacturing expenses, expenses related to the development of EC2629 and other pre-clinical work and general research, and expenses related to the EC1456 phase 1 trial.
General and administrative expenses were down 1.9% to $3.7 million due to lower compensation expense.
Pipeline Update
Endocyte is focused on the development of two candidates, EC1456 and EC1169, both of which are in phase I studies currently.
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 portion of 6.0 mg/m2 has been determined as the maximum twice-a-week dose and is being used in the expansion phase of the study. The company is enrolling patients in the expansion cohort of up to 40 folate receptor-positive (FR-positive) NSCLC patients, as determined by an etarfolatide scan, to obtain 6.0 mg/m2 twice a week. The patients included in this expansion phase of the trial will receive first-line chemotherapy and will be treated with anti-programmed death-1 (anti-PD-1) therapy. In addition, Endocyte is conducting an ovarian cancer surgical study to characterize EC1456 at the tumor level through a multifaceted analysis of collected tissue samples after administration of the drug.
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 a week dose of 6.5 mg/m2.
Efficacy and safety data from the expansion cohorts for both EC1456 and EC1169 will be reported in medical conferences in the first half of 2017.
The company is also nearing the completion of pre-clinical 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 microenvironment by shutting down tumors associated with macrophages. The company expects to file an IND for EC2629 by mid 2017. The company also continues to progress with next-generation CAR T-cell therapeutic platform, in collaboration with Seattle Children's Research Institute.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
Endocyte, Inc. Price and Consensus
Endocyte, Inc. Price and Consensus | Endocyte, Inc. Quote
VGM Scores
Currently, Endocyte's stock has a poor Growth Score of 'F', 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 company's stock is suitable solely for momentum investors based on our style scores.
Outlook
The Zacks Consensus Estmate moved higher over the last 30 days. The stock has a Zacks Rank #2 (Buy). We are expecting an above average return from the stock in the next few months.