Friday, 22 February, 2019

Novartis to Acquire Endocyte in Deal Worth $2.1 billion

Novartis to Acquire Endocyte in Deal Worth $2.1 billion Novartis to Acquire Endocyte in Deal Worth $2.1 billion
Melissa Porter | 20 October, 2018, 14:30

The $24-per-share offer - around $8.50 above Endocyte's closing share price yesterday - has the backing of the biotech's board, but still needs the approval of its shareholders. This offer values Endocyte's equity at United States dollars 2.1 billion.

Endocyte's knowledge and abilities will help Novartis in its development of a drug that can be used earlier in the treatment of prostate cancer. It is expected to be completed in the first half of 2019, subject to approval by Endocyte stockholders, antitrust and regulatory approvals and other customary closing conditions.

Endocyte uses drug conjugation technology to develop targeted therapies with companion imaging agents, including Lu-PSMA-617, a potential first-in-class investigational radioligand therapy (RLT) for the treatment of metastatic castration-resistant prostate cancer (mCRPC).

It's worth pointing out that buying Endocyte also gives Novartis an additional platform in CAR-T cancer immunotherapy to complement its current assets, including already-marketed therapy Kymriah (tisagenlecleucel) for CD19-positive blood cancers.

Swiss drugmaker Novartis raised its full-year sales outlook, citing growing revenue from its Cosentyx psoriasis and arthritis drug as well as the performance of its heart failure medicine Entresto, whose third-quarter sales more than doubled.

Novartis shares jumped 1.31% on the news and were little changed this year through Wednesday.

Endocyte shares closed on Thursday at $23.40, up 50.39% on the day.

The radioligand therapy, or RLT, uses a ligand, or small molecule that is created to bind to a protein expressed on the surfaces of most prostate cancer cells - but not normal cells - called prostate-specific membrane antigen, according to Endocyte's website. S., makes radioactive drugs coupled with molecules that target specific cells to deliver treatments to tumors.

West Lafayette-based Endocyte Inc.