UPDATE: Piper Jaffray Initiates Coverage on Endocyte with Overweight Rating, $17 PT on Multiple Drivers at Attractive Valuation

In a report published Monday, Piper Jaffray analyst Edward A. Tenthoff initiated coverage on

with an Overweight rating and $17.00 price target. In the report, Piper Jaffray noted, “Endocyte is developing Small Molecule Drug Conjugates (SMDCs) and companion diagnostics to treat cancer and inflammation. We see several drivers over the next 12 months that could validate the company's pipeline. The EMA is considering conditional approval of vintafolide in folate receptor 100% (FR100%) ovarian cancer with a CHMP opinion anticipated by early 2014. We see limited downside if denied as partner Merck is conducting the Phase III PROCEED trial in FR+ ovarian cancer and the Phase IIb TARGET trial in FR+ lung caner. Endocyte is responsible for commercializing the etarfolatide diagnostic test and has a pipeline of wholly owned SMDCs approaching the clinic. We are initiating coverage with an Overweight rating and $17 price target.” Endocyte closed on Friday at $11.54.