May 6, 2014 (Shareholders Foundation) - An investigation on behalf of investors of Endocyte, Inc. (NASDAQ:ECYT) shares over potential securities laws violations by Endocyte and certain of its directors and officers in connection certain financial statements was announced.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Endocyte, Inc. (NASDAQ:ECYT) concerning whether a series of statements by Endocyte regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
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.
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.
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 May 5, 2014, NASDAQ:ECYT shares closed at $6.99 per share.