Endocyte soars on EC145 deal with Merck

Endocyte Inc. (NASDAQ:ECYT) jumped $3.82 (101%) to $7.62 on Monday after granting Merck & Co. Inc. (NYSE:MRK) exclusive, worldwide rights to develop and commercialize cancer compound vintafolide ( EC145). The product is in the Phase III PROCEED trial to treat platinum-resistant ovarian cancer and in a Phase II trial to treat non-small cell lung cancer (NSCLC).

Endocyte will receive $120 million up front and is eligible for up to $880 million in milestones, plus an equal share of U.S. profits and double-digit royalties on sales outside the U.S. Endocyte, which retains U.S. co-promotion rights, will be responsible for the majority of funding and completion of the PROCEED trial. Merck, which is responsible for all other development costs, plans to submit a regulatory application for vintafolide in the U.S. upon completion of PROCEED. Progression-free survival (PFS) data are expected in 1H14. Last month, Endocyte said it planned to submit an MAA seeking conditional approval in the EU in 3Q12 (see BioCentury Extra, March 14). ...