Down 14%: Is Endocyte a Bad News Buy?

Endocyte  shares got hammered today on the disappointing news that partner Merck  decided to hand back rights to vintafolide and leave the company to go it alone.

Endocyte is waiting for more data from a phase 2b trial in non-small cell lung cancer before deciding what vintafolide's future should be. The drug recently flopped in a phase 3 trial for platinum-resistant ovarian cancer.

So, with a lot of optimism priced out of the stock, is this a buying opportunity?

In the video below, health care analysts Michael Douglass and David Williamson let you know what they think.

Leaked: This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that will revolutionize not how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. In order to outsmart Wall Street and realize multi-bagger returns you will need The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW.

The article Down 14%: Is Endocyte a Bad News Buy? originally appeared on

David Williamson owns shares of Merck. Michael Douglass has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story