Endocyte, Inc. ECYT reported a first-quarter 2016 loss of 24 cents per share, narrower than both the Zacks Consensus Estimate of a loss of 26 cents and the year-ago loss of 26 cents. The company earned collaboration revenues of $12,000 in the reported period, flat year over year. The Quarter in Detail Research and development (R&D) expenses were $6.5 million, down 1.3% year over year primarily due to a decrease in expenses related to the TARGET trial, which is now complete, along with lower discovery research expenses. General and administrative expenses were down 12.4% to $3.8 million due to a reduction in legal and professional fees in the reported quarter. 2016 Outlook Endocyte continues to expect cash balance between $125 million and $130 million at the end of 2016. Pipeline Update Endocyte’s pipeline includes vintafolide (non-small cell lung cancer/NSCLC), EC1456 (NSCLC) and EC1169 (recurrent prostate cancer). In a phase IIb study, vintafolide, in combination with docetaxel, resulted in higher rates of hematologic and peripheral neuropathy adverse events. Hence, Endocyte has shifted focus to the development of its second-generation folate targeted agent, EC1456, in second-line NSCLC. A phase I dose-escalation study on the candidate is currently underway to determine the maximum-tolerated dose. The company is considering two schedules for the candidate. With the determination of the maximum-tolerated dose, the company will evaluate these schedules in up to 40 second-line NSCLC patients selected by EC20 imaging with all FR-positive disease. It expects single-agent efficacy data in NSCLC on the candidate by 2016 end. The company is also conducting a phase I dose-escalation study on EC1169 to determine its maximum-tolerated dose. After determining the maximum-tolerated dose of EC1169 (currently in a dose-escalation trial with a once-weekly schedule), the candidate will be evaluated as a single-agent therapy in advanced prostate cancer patients, who were previously treated with hormone therapy. Endocyte expects single-agent efficacy data in prostate cancer in late 2016 or 2017. The company expects to present data from the phase I dose escalation studies on EC1456 and EC1169 later in 2016. Our Take Endocyte’s narrower-than-expected first-quarter loss as well as its efforts on pipeline development are encouraging. 2016 is going to be a data-rich year for Endocyte and we expect investor focus on further pipeline updates from the company. Endocyte carries a Zack Rank #3 (Hold). Some better-ranked stocks in the healthcare sector include Shire plc SHPG, Nektar Therapeutics NKTR and Mallinckrodt Public Limited Co. MNK. All three carry a Zacks Rank #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NEKTAR THERAP (NKTR): Free Stock Analysis Report ENDOCYTE INC (ECYT): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report MALLINCKRODT PL (MNK): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research