- Endocyte (NASDAQ:ECYT) decides to terminate enrollment in a Phase 1 clinical trial assessing one of its two leading small molecule drug conjugates (SMDC), EC1456, in solid tumors due to lack of efficacy. Another study, in ovarian surgery patients, will continue since preliminary data showed evidence that patients with folate receptor-positive disease are being successfully identified with the use of the etarfolatide imaging agent. although the company says the intratumoral levels of the EC1456 drug payload may be lower than expected.
- It will also narrow the development program for its other leading SMDC, EC1169, in patients with metastatic castration-resistant prostate cancer to those who have been exposed to taxane since PSMA (prostate-specific membrane antigen) increases with prior treatments. Enrollment in taxane-naive patients will cease.
- The company plans to lay off 40% of its workforce as its realigns its resources. It expects to record a $2.4M charge related to termination benefits and accelerated closure of the EC1456 study. Management now projects a cash balance of $105M by year-end.
- Shares are off 27% premarket on increased volume.
- Now read: Biotech Forum Daily Digest: Headwinds Remain. Spotlight On MediWound
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