Endocyte, Novartis Ink $2.1B Merger Agreement

Novartis to buy cancer drugmaker Endocyte for $2.1 bln in cash

The companies expect the takeover to close in the first half of next year, pending approval by regulators and Endocyte's shareholders, who would receive $24 per share-which is 54% more than Endocyte's closing price on Wednesday.

Watch Endocyte and Novartis trade in real time. The transaction was unanimously approved by the board of directors of Endocyte.

Novartis also reported its third-quarter earnings Thursday, which showed net group sales grew 6% to CHF12.8 billion in Q3 2018, from CHF12.4 billion a year earlier.

If completed, Novartis will gain rights to Endocyte's Lu-PSMA-617, an investigational radioligand therapy (RLT) for the treatment of metastatic castration-resistant prostate cancer (mCRPC). "The global reach and expertise of Novartis in developing and commercializing RLT therapies will be critical in efforts for patients to benefit from these therapies as quickly as possible".

Clovis Oncology (CLVS) disclosed new clinical trial results Friday showing a 44 percent tumor response rate following treatment with its PARP inhibitor, called Rubraca.

Novartis AG is a holding company, which engages in the development, manufacture, and marketing of healthcare products. The company was founded on February 29, 1996 and is headquartered in Basel, Switzerland. It uses a proprietary technology to create novel small molecule drug conjugates and companion imaging diagnostics for personalized targeted therapies. The drug targets prostate-specific membrane antigen (PSMA), which is expressed on prostate cancer cells, and delivers a cell-killing radioisotope directly to the tumour.

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.

On Oct. 18, 2018, Novartis announced that it plans acquire Endocyte, a US-based biopharmaceutical company focused on targeted cancer therapeutics.

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