It has been about a month since the last earnings report for Endocyte, Inc. . Shares have added about 5.1% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is ECYT 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 Q1 Loss Narrower Than Expected, Shares Up
Endocyte incurred a loss of 16 cents per share in the first quarter of 2018 narrower than the Zacks Consensus Estimate of a loss of 19 cents. The figure was narrower than the year-ago loss of 27 cents.
The company earned collaboration revenues of $0.02 million in the reported quarter.
Quarterly Details
Research and development (R&D) expenses fell 33.8% year over year to $5.3 million, courtesy of the workforce reduction as part of the company’s restructuring plan, and the discontinuation of certain research and development activities.
General and administrative expenses were almost flat year over year at $3.8 million.
Pipeline Update
The company’s key pipeline candidate is 177Lu-PSMA-617, a first-in-class radioligand and therapeutic (RLT) that targets prostate-specific membrane antigen. The company acquired exclusive worldwide rights to develop and commercialize 177Lu-PSMA-617 from ABX GmbH in October 2017. The candidate holds more than $1 billion market opportunity and its development is now the priority of the company.
Along with the earnings report, the company announced updated encouraging data on 30 patients with PSMA-positive metastatic castration-resistant prostate cancer (mCRPC) treated with 177Lu-PSMA-617 from the ongoing phase II study. The data was published in The Lancet Oncology. The study showed that treatment with 177Lu-PSMA-617 led to longer median overall survival, longer median prostate specific antigen progression-free survival, and higher RECIST response rates in patients as compared with the previously presented data. The company expects to report new data at the annual meeting of the American Society of Clinical Oncology in June from the trial’s expansion to 50 patients.
During the quarter, the company also finalized a phase III VISION study design evaluating 177Lu-PSMA-617 in patients with PSMA-positive mCRPC following a successful End of Phase II meeting with the FDA.
The company expects to enroll the first patient in the VISION study in 2018.
During the quarter, Endocyte also entered into an agreement with ITM Isotopen Technologien München AG, a specialized radiopharmaceutical company, where the latter will provide clinical supply of no-carrier-added Lutetium for the manufacturing of 177Lu-PSMA-617.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month. There has been one revision higher for the current quarter compared to one lower. In the past month, the consensus estimate has shifted downward by 7.6% due to these changes.
Endocyte, Inc. Price and Consensus
VGM Scores
At this time, ECYT 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 D. 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 based on our styles scores.
Outlook
ECYT has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Endocyte (ECYT) Up 5.1% Since Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Endocyte, Inc. . Shares have added about 5.1% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is ECYT 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 Q1 Loss Narrower Than Expected, Shares Up
Endocyte incurred a loss of 16 cents per share in the first quarter of 2018 narrower than the Zacks Consensus Estimate of a loss of 19 cents. The figure was narrower than the year-ago loss of 27 cents.
The company earned collaboration revenues of $0.02 million in the reported quarter.
Quarterly Details
Research and development (R&D) expenses fell 33.8% year over year to $5.3 million, courtesy of the workforce reduction as part of the company’s restructuring plan, and the discontinuation of certain research and development activities.
General and administrative expenses were almost flat year over year at $3.8 million.
Pipeline Update
The company’s key pipeline candidate is 177Lu-PSMA-617, a first-in-class radioligand and therapeutic (RLT) that targets prostate-specific membrane antigen. The company acquired exclusive worldwide rights to develop and commercialize 177Lu-PSMA-617 from ABX GmbH in October 2017. The candidate holds more than $1 billion market opportunity and its development is now the priority of the company.
Along with the earnings report, the company announced updated encouraging data on 30 patients with PSMA-positive metastatic castration-resistant prostate cancer (mCRPC) treated with 177Lu-PSMA-617 from the ongoing phase II study. The data was published in The Lancet Oncology. The study showed that treatment with 177Lu-PSMA-617 led to longer median overall survival, longer median prostate specific antigen progression-free survival, and higher RECIST response rates in patients as compared with the previously presented data. The company expects to report new data at the annual meeting of the American Society of Clinical Oncology in June from the trial’s expansion to 50 patients.
During the quarter, the company also finalized a phase III VISION study design evaluating 177Lu-PSMA-617 in patients with PSMA-positive mCRPC following a successful End of Phase II meeting with the FDA.
The company expects to enroll the first patient in the VISION study in 2018.
During the quarter, Endocyte also entered into an agreement with ITM Isotopen Technologien München AG, a specialized radiopharmaceutical company, where the latter will provide clinical supply of no-carrier-added Lutetium for the manufacturing of 177Lu-PSMA-617.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month. There has been one revision higher for the current quarter compared to one lower. In the past month, the consensus estimate has shifted downward by 7.6% due to these changes.
Endocyte, Inc. Price and Consensus
Endocyte, Inc. Price and Consensus | Endocyte, Inc. Quote
VGM Scores
At this time, ECYT 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 D. 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 based on our styles scores.
Outlook
ECYT has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.