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Endocyte Cuts IPO Price Expectation

Biotechnology company Endocyte Inc. slashed its pricing expectations for an initial public offering on Friday, but more than doubled the amount of stock involved.

NEW YORK (AP) -- Biotechnology company Endocyte Inc. slashed its pricing expectations for an initial public offering on Friday, but more than doubled the amount of stock involved.

The company now expects an IPO of 12.5 million shares at $6 apiece, according to a filing with the Securities and Exchange Commission. Previously, the company said it expected to offer just under 5.4 million shares at $13 to $15 apiece.

Meanwhile, the company now expects to give underwriters the option to buy up to 1,875,000 shares instead of 802,500 shares to cover excess demand.

Including the underwriters options, the company could see proceeds of up to $86.3 million. It has said it plans on using "substantially" all of the proceeds to fund its operating plan.

The West Lafayette, Ind., company does not yet market a product and has not yet reported a profit.

The company's key focus is on developing treatments for cancer and inflammatory diseases. The lead product candidate, EC145, is a potential cancer treatment. The company hopes to move it into late-stage development as a potential ovarian cancer treatment.

Competition in the market would include Roche, which is testing the drug Avastin as a potential ovarian cancer drug. Eisai Co. is also developing a potential ovarian cancer drug, as is Nektar Therapeutics and Eli Lilly and Co.

Endocyte expects to begin trading Friday under the "ECYT" symbol on the Nasdaq.
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