so there will be a panic sell off. but this withdrawal of vintafolide and return of its rights to ECYT byt Merck was telegraphed. ECYT is clearly focused on tubulysis (although full results from vintafolide will be released in September)
From a recent June 2014 interview with ECYT CFO:
What part of the business do you think is being ignored that has more upside potential than Wall Street is giving it?
The initiation of the Phase I trial of our proprietary SMDC targeting prostate-specific membrane antigen (PSMA), EC1169, will allow us to explore a new target with our potent tubulysin cytotoxic warhead. In addition, our Phase I trial of EC1456, which continues to progress well, provides an additional opportunity to target the folate receptor, which is expressed on many different cancer types. EC1456's drug payload, tubulysin, has demonstrated curative activity in preclinical models that were resistant to paclitaxel, cisplatin, as well as vintafolide (with its drug payload, vinblastine). The lead drug, vintafolide, which is partnered with Merck, is also being evaluated in combination with docetaxel in patients with non-small cell lung cancer. It was announced in March that the Phase IIb TARGET trial met its primary endpoint. Detailed results are expected to be presented at ESMO in late September.
Agree. I can't imagine anyone surprised. If just business, MRK can wait for results as well to renegotiate if they want. The journal quotes management that nobody has seen lung results since the Positive march report. This can be a huge win. Having said that, the market is putting it at zero, putting pipeline at zero, hence why trading at cash. That is where I entered. All about risk/return. Drop from $33 to $6.3 certainly reflects a complete blow-up. Trading at cash basically says zero value to everything. IMO