Endocyte plans to raise about $78 million in IPO

Associated Press Modified: January 28, 2011 at 2:33 pm •  Published: January 28, 2011
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NEW YORK (AP) — Biotechnology company Endocyte Inc. plans an initial public offering next week worth about $78 million.

The company plans on offering just under 5.4 million shares at a price between $13 and $15 apiece, according to a filing Jan. 21 with the Securities and Exchange Commission. Underwriters of its IPO will have the option to buy up to an additional 802,500 shares to cover excess demand.

The West Lafayette, Ind., company does not yet market a product and has not yet reported a profit.

The company's key focus is on developing treatments for cancer and inflammatory diseases. The lead product candidate, EC145, is a potential cancer treatment. The company hopes to move it into late-stage development as a potential ovarian cancer treatment.

Competition in the market would include Roche, which is testing the drug Avastin as a potential ovarian cancer drug. Eisai Co. is also developing a potential ovarian cancer drug, as is Nektar Therapeutics and Eli Lilly and Co.

The company plans on about $67.7 million in net proceeds, based on an offering price of $14 per share and after costs. The estimated proceeds would be $78.1 million if underwriters exercised their options.

The company plans on using "substantially" all of proceeds to fund its operating plan, which includes development of EC145.

Endocyte said it will trade under the "ECYT" symbol on the Nasdaq.