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Finding new and exciting Biotech companies that target novel mechanisms is like trying to find a needle in a haystack. Sure there are many companies working on cutting edge science, but investing in those companies to reap the rewards of their work is a very dangerous game. More often than not, companies fail because the mechanism does not pan out, the compound(s) do not have pharmacokinetics (get into the body or last very long in the body), or an adverse event happens that knocks years off a development timeline. In addition, the stock can be manipulated by market makers so investors don’t know which way is up. I approach investing in biotechs as a long term prospect. I continue to like our current portfolio of biotech companies (join in chat for many of those plays), and we continually add/subtract shares and sell/buy options on the vacillations of the market to reduce our cost basis. I believe our virtual biotech portfolio is well positioned with many companies that have upside potential.
I am starting to dive into the pipelines of a few companies that went IPO last year, and there is one sticks out at me, Endocyte.
Endocyte (ECYT) has six programs in various stages of clinical trials. The company was founded in 1996, has no marketed products, but boasts a pipeline of cancer/inflammatory disease candidates with companion diagnostics.
First, understanding what the company’s drugs do is important, then diving into the pipeline will make some sense.
Folate (water soluble Vitamin B9) is needed for DNA synthesis, DNA repair, and DNA methylation as well as to act as a co-factor in biological reactions. In essence, it helps cells grow and multiply. Now, scientists (chemists) are good at manipulating and mimicking biological systems, and Endocyte has drugs that incorporate folate with vinca akloids attached to them (called a ‘Trojan Horse‘ process). The folate-drug complex binds to the folate receptor (FR) that is over-expressed on the cell surface of many cancers and is subsequently taken into the cell (endocytosis). Molecules as diverse as small radiodiagnostic imaging agents to large DNA plasmid formulations have successfully been delivered inside FR-positive cells and tissues. Endocyte has one type of folate-drug delivery system for different cancer types.
Endocyte’s lead drug is EC145 which targets the…
