Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Endocyte , a biopharmaceutical company focused on developing oncological and inflammatory disease treatments, jumped by double digits -- as much as 13% to be exact -- for the second time in three days after receiving another price target hike by a research firm.
So what: On Monday, R.W. Baird boosted its rating on Endocyte to "outperform" from "neutral" and raised its price target on the company by 44% to $13. Today, Wedbush Securities analyst Gregory Wade boosted his price target on Endocyte to $20 from $16, citing the fact that Wall Street has overlooked the potential for the company's ovarian and lung cancer treatment Vintafolide, which is being licensed out to Merck . Wade estimates that peak sales of the drug -- if approved in the U.S. and Europe -- could reach $500 million domestically and $400 million in Europe.
Now what: I know you've heard this a thousand times before, but keep in mind that analyst actions are rarely long-term drivers of a company's share price, so don't pay them too much credence. However, I can't help but note that I do agree with Wedbush analyst Wade's focus on Vintafolide, which I touched on briefly on Monday. An approval in either the U.S. or EU (or both) would be the most immediate catalyst for Endocyte with everything else coming up a clear second. It's a company that definitely bears watching.
Craving more input? Start by adding Endocyte to your free and personalized watchlist so you can keep up on the latest news with the company.
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The article Why Endocyte Shares Had a Case of Deja Vu originally appeared on Fool.com.
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