December 11, 2017

Endocyte IPO

Endocyte is a West Lafayette, Indiana, biopharmaceutical company that develops Small Molecule Drug Conjugates (SMDC) to improve the efficiency and targeting of cancer drugs, designed to lead them directly to the diseased cells.


Endocyte currently has six drugs undergoing clinical trials. Its most advanced and promising drug, called EC145, is a chemotherapy agent for the treatment of ovarian and lung tumors. The drug works by attaching itself to the vitamin folate, tricking the cancer cells into absorbing the drug thinking it is the vitamin alone, while avoiding healthy cells.

In addition to EC145, Endocyte is working on drugs for prostrate cancer and inflammatory diseases. The company believes that their proprietary technology, called Small Molecule Drug Conjugates (SMDC) will be able to treat diseases like atherosclerosis, rheumatoid arthritis, osteoarthritis as well as advanced kidney cancer.

Endocyte was founded in 1995 by Philip Low, a PhD chemist at Purdue University, and Ron Ellis, now the company’s President and CEO. Dr. Low, with fellow Purdue chemist, Dr. Chris Leamon, worked in the late 1980s on a way to exploit the folate receptors of cells to deliver molecules within the cells. Their results were published in 1991 and began to attract investors interested in the technology. Dr. Low then joined with Ron Ellis to found Endocyte.

EC145 was invented in 2004 and entered clinical trials in 2006. The drug is currently in Phase 3 clinical trials, the only drug to ever reach phase 3 found to be effective against ovarian cancer that is resistant to platinum-based drugs.

Endocyte is also developing a companion diagnostic agent, called EC20, which is designed to predict the patient’s response to EC145. It works by replacing the actual EC145 drug payload with an imaging agent, allowing researchers to identify likely responders to the drug.

Endocyte’s IPO was on Feb. 4, 2011, with 12.5 million shares priced at $6.00. The offering was underwritten by the Royal Bank of Canada and Leerink Swann and Co. On its first day of trading Endocyte rose 29%, closing at $7.73. Initially, Endocyte proposed offering 5.35 million shares in the range of $13 to $15, later cutting the price to $7.00, with 10.7 million shares offered, before settling on the final figures.

As of July 14, Endocyte trades on the NASDAQ at $13.89.

Endocyte S-1 Form

Endocyte Website

Bloomberg

University of Cincinnati Academic Health Center