Shares of Endocyte (NASDAQ: ECYT), a clinical-stage biotech focused on cancer, rose as much as 13% in early-morning trading on Tuesday on heavy volume. As of 11:35 p.m. EDT, the stock was up about 9%. While there doesn't appear to be any obvious news that can justify the big move, Endocyte has been on fire lately, thanks to a key announcement earlier this month.
A few weeks back, Endocyte announced that it had purchased exclusive worldwide licensing rights from the German company ABX GmbH for its experimental prostate cancer drug PSMA-617. The deal cost Endocyte $12 million up front plus 2 million shares of common stock. It also provided ABX with a warrant that will allow the purchase of up to 4 million additional shares. What's more, ABX is also eligible to receive up to $160 million in milestone payments and tiered royalties on any sales.
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Source: Fool.com