Wedbush Feels Sell Off of Endocyte (ECYT) Overdone, Sees EU Launch Timing Pushed Back 6 Months
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Price: $23.99 --0%
Rating Summary:
10 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 9
Rating Summary:
10 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 9
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Wedbush is maintaining its Outperform rating on shares of Endocyte (NASDAQ: ECYT) following a 65 percent decline in the stocks price yesterday. The firm also reduced its price target from $20 to $16.
The company offered the results of the Phase II PRECEDENT trial of EC145 in platinum-resistant ovarian cancer yesterday. ECYT reported there was no overall survival benefit for EC145 although the independent review committee confirmed the PFS advantage EC145 had strong folate receptor expressors over the control (Doxil-treated) arm.
An analyst at Wedbush comments, "We view the severe decline in ECYT shares to levels that imply nearly no technology value as a significant overreaction by the Street for three reasons: 1) the trial was not powered to determine survival, 2) the survival data are confounded in our opinion by imbalances in subsequent platinum treatment and 3) the survival curve of the control group appears to be anomalous. Conversely, the Street appears to be completely ignoring the validation of PFS benefit for FR++ patients."
To reflect the time it will take for the company to tweak its Phase III plans to include FR++ patients and alternative chemotherapy regimens, the firm now forecasts a potential EU conditional launch in the third quarter of 2013, two later than its previous forecast.
For FY11 and FY12, Wedbush is now estimating EPS of ($1.44) and ($1.50) on $0 dollars in revenue for each year.
For an analyst ratings summary and ratings history on Endocyte click here. For more ratings news on Endocyte click here.
Shares of Endocyte closed at $3.57 yesterday.
The company offered the results of the Phase II PRECEDENT trial of EC145 in platinum-resistant ovarian cancer yesterday. ECYT reported there was no overall survival benefit for EC145 although the independent review committee confirmed the PFS advantage EC145 had strong folate receptor expressors over the control (Doxil-treated) arm.
An analyst at Wedbush comments, "We view the severe decline in ECYT shares to levels that imply nearly no technology value as a significant overreaction by the Street for three reasons: 1) the trial was not powered to determine survival, 2) the survival data are confounded in our opinion by imbalances in subsequent platinum treatment and 3) the survival curve of the control group appears to be anomalous. Conversely, the Street appears to be completely ignoring the validation of PFS benefit for FR++ patients."
To reflect the time it will take for the company to tweak its Phase III plans to include FR++ patients and alternative chemotherapy regimens, the firm now forecasts a potential EU conditional launch in the third quarter of 2013, two later than its previous forecast.
For FY11 and FY12, Wedbush is now estimating EPS of ($1.44) and ($1.50) on $0 dollars in revenue for each year.
For an analyst ratings summary and ratings history on Endocyte click here. For more ratings news on Endocyte click here.
Shares of Endocyte closed at $3.57 yesterday.
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