Cancer drug business Endocyte raises $26 million

WEST LAFAYETTE, Indiana — The cancer drug developer Endocyte has raised $26 million it will use to help complete a study for its ovarian cancer treatment.

The company is in the midst of a Phase 2 trial on an ovarian drug that works with women who have developed resistance to chemotherapy. Data from the study will be available as early as mid-2010.

Endocyte has nine separate cancer drugs in development, with the ovarian treatment furthest in the pipeline, and will also use the funding to develop the entire platform. The company also recently finished a pilot Phase 2 study for a lung-cancer treatment and is testing treatments for breast and kidney cancer.

Endocyte’s drug platform uses a type of “drug guidance system” that send drugs to diseased cells while avoiding healthy ones. The hope is the system will enable doctors to use more potent drugs because of fewer side effects, and as a result cut the number of doses delivered to a cancer patient.

Previous investors Sanderling Ventures, Burrill & Co., American Bailey Ventures, Blue Chip Venture Co. and Triathlon Medical Ventures were joined with Clarian Health Ventures in the round. In August, the company said it received a milestone payment through a partnership with Bristol-Myers Squibb.

The company has raised $90 million in equity including this week’s round.