NEW YORK, June 30, 2014 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Southern District of Indiana on behalf of all persons who purchased or otherwise acquired the securities of Endocyte, Inc. ("Endocyte" or the "Company") (Nasdaq:ECYT) during the period between March 21, 2014 and May 2, 2014 (the "Class Period").
The complaint alleges that during the Class Period, certain of Endocyte's officers issued materially false and misleading statements regarding the Company's prospects for the experimental drug VYNFINIT®. Specifically, on March 21, 2014, Endocyte issued a press release announcing 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"). The Complaint alleges that Endocyte 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. As a result of the defendants' statements, on March 21, 2014, Endocyte's stock jumped 92%, from $14.64 to $28.17. The Complaint further alleges that, in an attempt to take advantage of the Company's stock jump following the March 21 press release, Endocyte issued a public offering to quickly sell shares at the inflated price. By April 2, 2014 the Company issued over 5 million shares, and acquired a net proceed of approximately $101.8 million.
On May 2, 2014 the Company announced that VYNFINIT® was found ineffective in the treatment of PROC based on RECIST 1.1. Upon this announcement, on May 2, 2014, Endocyte stock dropped over 61%, from $17.38 to close at $6.62. On May 19, 2014 the Company then announced that it would withdraw its application to sell VYNFINIT® in Europe. The Complaint alleges that the omitted and/or misrepresented information is believed to be material to potential Endocyte's shareholders' ability to make an informed decision whether to purchase Endocyte stock.
If you wish to serve as lead plaintiff, you must move the Court no later than August 25, 2014. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at email@example.com.
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Source:Gainey McKenna& Egleston