Endocyte readies $86M IPO for chilly market

Yet another biotech company with no product revenue and an abundance of risk is preparing to dive into chilly market waters. In this case the undaunted Endocyte, a developer relying on its platform for small molecule drug conjugates for cancer and inflammatory diseases, has filed plans for an IPO designed to raise up to $86 million.

Endocyte has successfully raised about $90 million from venture backers so far, including a $26 million round last fall that was earmarked for its work on a new lead therapy for ovarian cancer among chemo-resistant patients. EC145 has mounted three Phase II cancer studies, according to the biotech's web site. Burrill & Co., Sanderling Ventures and others have backed the developer, which is based in West Lafayette, IN. Endocyte is also developing companion diagnostics to help identify patients most likely to benefit from its drugs.

Endocyte booked only $3 million in revenue from deals and grants last year, while registering $15.7 million in losses, according to a report in MedCity News. That's a classic financial profile for a biotech with no products on the market, and one that has stirred little passion among investors so far this year. The joint book-running managers of the proposed offering will be RBC Capital Markets and Leerink Swann. Wedbush PacGrow Life Sciences and Baird are acting as co-managers for the offering.

- here's the Endocyte release
- read the MedCity News story