San Diego, CA -- (ReleaseWire) -- 06/30/2014 -- An investor, who purchased shares of Endocyte, Inc. (NASDAQ:ECYT), filed a lawsuit in the U.S. District Court for the Southern District of Indiana over alleged violations of Federal Securities Laws by Endocyte, Inc. in connection with certain allegedly false and misleading statements made between March 21, 2014 and May 2, 2014
Investors who purchased shares Endocyte, Inc. (NASDAQ:ECYT) have certain options and for certain investors are short and strict deadlines running. Deadline: August 25, 2014. NASDAQ:ECYT investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of Endocyte, Inc. (NASDAQ:ECYT) common shares between March 21, 2014 and May 2, 2014, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that defendants issued misleading statements between March 21, 2014 and May 2, 2014 regarding the efficacy of Endocyte's experimental drug, VYNFINIT®, and misrepresented or failed to disclose material information concerning the Company's business and financial prospects.
Endocyte, Inc. reported that its annual Total Revenue rose from $0.19 million in 2011 to $64.87 million in 2013 and that its respective Net Loss declined from $40.53 million to $18.03 million.
On March 21, 2014, Endocyte, Inc. announced that the Committee for Medicinal Products for Human Use (“CHMP”) of the European Medicines Agency issued "positive opinions" for the "Conditional Marketing Authorisations" for the drug VYNFINIT®, used to treat platinum-resistant ovarian cancer ("PROC") with VYNFINIT® using testing methods known as response evaluation criteria in solid tumors ("RECIST").
Shares of Endocyte, Inc. (NASDAQ:ECYT) grew from $3.06 per share in late 2011 to as high as $28.17 per share in March 2014.
The plaintiff alleges that Endocyte, Inc. failed to disclose that the "positive opinions" were based on the testing criteria called RECIST 1.0 while the pending analysis for the "Conditional Marketing Authorisations" would be using the more stringent RECIST 1.1 testing criteria, and that in an attempt to take advantage of the Company's stock jump following the March 21 announcement, Endocyte, Inc issued a public offering to quickly sell shares at the inflated price
Then on May 2, 2014, Endocyte, Inc. reported its first quarter financial results and privded a clinical update. In a separate announcement from the same day Merck and Endocyte, Inc. (NASDAQ: ECYT) announced that the Data Safety Monitoring Board (DSMB) of the PROCEED trial has completed a pre specified, interim futility analysis and the DSMB recommended that the trial be stopped because vintafolide did not demonstrate efficacy on the pre-specified outcome of Progression-Free Survival (PFS) in patients with platinum-resistant ovarian cancer. Shares of Endocyte, Inc. (NASDAQ:ECYT) dropped from $17.99 per share on May 1, 2014, to a close of $6.62 per share on May 2, 2014.
On June 27, 2014, NASDAQ:ECYT shares closed at $6.55 per share.
Those who purchased shares of Endocyte, Inc. (NASDAQ:ECYT) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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