Endocyte Spiked Sharply On Rumored Resumption Of Cancer Drug Trial
Endocyte (NASDAQ: ECYT) rose sharply in early afternoon trading Monday from near a 52-week low on rumors the company may resume a trial of its cancer drug candidate, vintafolide.
The stock initially spiked more than nine percent on the knee-jerk reaction; however, as traders continued to digest the news and search for the story through other sources, upside was pared.
The rumors surfaced on various websites and via Twitter.
Endocyte said earlier this month it regained full rights to the drug after partner Merck halted a Phase III trial in May on the advise of a safety panel.
Merck had acquired rights to the drug in exchange for $120 million plus potential milestone payments of $880 million.
When Merck pulled out, Endocyte said it would await final results of a trial of the drug for lung cancer patients before evaluating further development opportunities.
Recently, at least four law firms have announced purported shareholder class action suits related to Endocyte's drug development woes.
Endocyte has traded recently at $6.61, up less than one percent.
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