Replies to post #140223 on Biotech Values

[dav1234]

ECYT +113%, congrats

[bladerunner1717]

re: ECYT

McBio,

ECYT had $128 million in cash at the end of 2011. With this deal, they should have cash on hand in the neighborhood of $220 million. With a market cap of around $280 million, the EV is only $60 million. For a company that is going to file for European approval this quarter and has (written) permission from the FDA to file for approval based on PFS in ovarian cancer (Plus, MRK is pushing into many other cancer indications.), the stock still strikes me as quite undervalued.

And, I think (and I realize that what I think is rather worthless) the platform of small-molecule conjugated antibodies is an interesting technology.

Any comments appreciated.


Bladerunner

[DewDiligence]

Curious ECYT comment from Cowen analyst:

http://online.wsj.com/article/SB10001424052702304432704577347541338400490.html

Cowen analyst Simos Simeonidis said… “We like Merck as a partner, since it has the bandwidth and know-how to make the most of this compound.”

In oncology, is there any Big Pharma with less proficiency than MRK?

[turtlepower]

ECYT -

Endocyte will be responsible for the majority of funding and completion of the PROCEED trial

I assume this means that the trial enrollment size will be increased to include a substantial number of FR+ patients. I initially thought it meant there would be a 2nd trial with just FR++ patients and a small number of FR+ patients based on PFS as the PE but the PR doesn't indicate a 2nd trial is in the offing. A second trial showing significant PFS results would improve the approvability odds since EC145 showed significant PFS results in the FR++ patients in both sets of scans.

Overall it looks like an impressive deal and, based on the terms, a better deal than the one THLD signed with Merck KGaA.