Biotech IPO Filing: Endoceutics of Canada

By Douglas A. McIntyre Published Feb 28, 9:45AM EST

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

A Canadian biotech company named Endoceutics, Inc. has filed with the SEC to raise up to $75 million via an IPO. The underwriting group is listed as First Albany, Oppenheimer, and Stifel Nicolaus. Endoceutics will have the ticker ENCX on NASDAQ.

This clinical-stage biotech is developing hormone therapies for the treatment and prevention of breast cancer and endocrine-related disorders in postmenopausal women and aging men. It has late-stage product candidates for the treatment and prevention of breast cancer and a variety of conditions affecting postmenopausal women. It plans to commence three Phase III clinical trials in the next twelve months and is supporting a Phase III clinical trial being conducted in collaboration with an academic research institution evaluating one of our compounds. The IPo proceeds will be sufficient to fund two product development programs through the completion of currently planned Phase III clinical trials and the filing of NDAs in the United States. Assuming favorable clinical trial results, it anticipates filing an NDA for one of these product candidates in 2008 and for the other in 2009 and its lead product candidate, for the treatment and prevention of breast cancer. The company has manufacturing and collaboration and distribution agreements in place with Schering-Plough (SGP).

There is one key risk worth noting here, which it brings up itself in the prospectus: We currently only have two full-time employees and will have two additional employees under contract…. and intend to rely on third-party contractors to perform a variety of our operations, including research and development activities, manufacturing, marketing and sale of our products. This is not unheard of but investors do tend to be more skeptical on operating companies of this size.

Jon C. Ogg
February 27, 2007

Jon Ogg is a partner in 24/7 Wall St., LLC and he can be reached at [email protected]; he does not own securities in the companies he covers.

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.