Endocyte Stock Plummets 30% On News Of Major Workforce Reduction; Clinical Trial Changes

Endocyte Inc. stock plummeted 30.4% in premarket trade Friday after the company said it plans a "strategic restructuring" that includes an about 40% reduction in its workforce and clinical trial changes, including ending enrollment in one trial. The company plans to terminate 47 employees, largely in the third quarter, and said it expects total restructuring costs of about $2.4 million, including severance, clinical trial termination charges and other costs. "The company is continuing to review the potential impact of the restructuring, and is unable to estimate any additional restructuring costs or charges at this time," the company said in its 8-K financial filing on Friday. Endocyte said it is stopping enrollment in a trial for its EC1456 trial, though it will continue to enroll a small number of patients in the compound's ovarian cancer surgical study. The company will also pare down the number of patients in an early-stage trial for its EC1169 compound for taxane-exposed metastatic castration-resistant prostate cancer, excluding patients who are new to treatment. Endocyte said it will continue developing its chimeric antigen receptor T-cell (CAR T-cell) SMDC adaptor platform and its dual-targeted DNA crosslinker drug EC2629. Endocyte shares closed at $2.73 on Thursday. Shares have risen 16.2% over the last three months, compared with a 2% rise in the S&P 500 .