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News & Analysis US

Biopharmaceutical Company Endocyte Files For $86.25 Mln IPO

August 18, 2010, Wednesday, 13:29 GMT | 08:29 EST | 16:59 IST | 19:29 SGT

(RTTNews) - Endocyte, Inc., a biopharmaceutical company developing targeted therapies for the treatment of cancer and inflammatory diseases, announced its plan to go public through an initial public offering of up to $86.25 million shares of its common stock.

The West Lafayette, Indiana-based company disclosed in its Form S-1 filing with the U.S. Securities and Exchange Commission that it expects its common stock to be listed on the NASDAQ Global Market under the symbol "ECYT". The company neither disclosed the number of shares to be offered nor details about the estimated price range.

Endocyte said it expects to use substantially all of the net proceeds to fund phase 2 and phase 3 clinical trials related to the use of EC145 and EC20 in NSCLC and PROC, respectively, to prepay debt and to move other clinical and preclinical products forward in the development process. The company plans to use any remainder of the net proceeds for working capital and other general corporate purposes.

Entities related to Sanderling Ventures, Pension Fund of the Christian Church, Cincinnati Financial Corp. (CINF), Entities related to ABV Holding Co., Burrill & Co., Blue Chip IV Limited Partnership, Triathlon Medical Ventures Fund, L.P. hold a notable stake in the company.

Ron Ellis is one of company's founders and has served as President and Chief Executive Officer since January 1996. Philip Low is one of company's founders and has served as Chief Science Officer since April 1998. Both Ellis and Low serve as Board members since December 1995.

Net loss for the years ended December 31, 2007, 2008, and 2009, and for the six months ended June 30, 2009 and 2010 was $13.7 million, $18.5 million, $17.0 million, $9.4 million and $11.0 million, respectively.

As of June 30, 2010, the company had a retained deficit of $89.0 million. Further, the company specified that it anticipate its operating losses to increase over the next several years.