Endocyte, Inc. (ECYT) reported fourth quarter 2012 net loss per share of 2 cents, in line with the Zacks Consensus Estimate and narrower than the year-ago loss of 30 cents.
Fourth quarter 2012 revenues were $14.5 million compared with $0.2 million in 2011. Revenues comprised solely of collaboration revenues. Revenues in the final quarter of 2012 edged past the Zacks Consensus Estimate of $14 million.
In the fourth quarter of 2012, research and development expenses were $10.5 million, up 35.7%. The company’s effort to develop its pipeline was primarily responsible for the increase. In the fourth quarter of 2012, general and administrative (G&A) expenses jumped 73% to $4.95 million. The increase was attributable to establishing commercial capability. An increase in compensation expenses was also responsible for pushing G&A costs up.
Full year 2012 net loss per share was 48 cents compared with a loss of $1.40 per share in 2011. The Zacks Consensus Estimate for 2012 hinted at a net loss of 47 cents per share. Revenues in 2012 were $34.7 million compared with 0.2 million in 2011. Revenues for 2012 surpassed the Zacks Consensus Estimate of $34 million.
In 2012, the company submitted a marketing authorization application (MAA) for its oncology candidate, vintafolide (MK-8109/EC145) in the EU. Endocyte is also looking for EU approval of etarfolatide (EC20) along with vintafolide. Etarfolatide is developed for the identification of tumors that overexpress folate receptors and that may respond to folate-targeted therapy. Both the candidates were granted orphan drug status in the EU in 2012. The company expects a decision from the European Commission on both the candidates towards the end of 2013.
Endocyte and its partner, Merck & Co. Inc. (MRK), are looking to get vintafolide approved as a treatment of patients suffering from folate-receptor positive platinum-resistant ovarian cancer in combination with pegylated liposomal doxorubicin (PLD). They entered into a partnership in Apr 2012.
Under this agreement, Endocyte granted Merck an exclusive license to develop, manufacture and commercialize the candidate.
Total expenses, net of Merck reimbursements, are expected around $65 million in 2013.
Cash, cash equivalents and investments are expected in the range of $145 - $160 million as on Dec 31, 2013.
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