Novartis to buy US-based Endocyte for $2.1bn
Swiss drug maker Novartis has agreed to buy US-based biopharmaceutical group Endocyte for $2.1bn in cash.
Under the terms of the deal, Novartis would pay $24 for each share of Endocyte, which is focused on developing targeted therapeutics for cancer treatment. The offer price represents a premium of 54% to Endocyte’s closing price of $15.56 on Wednesday.
Novartis said the deal would expand its RLT platform with both a potential near-term product launch and early-stage clinical development programs. It would also enable the company to harness its research and development expertise to investigate the potential development of Lu-PSMA-617 for use in earlier lines of prostate cancer therapy.
Chief executive officer Liz Barrett said: "Novartis has a strong legacy of addressing unmet needs with transformative therapies and is building a leadership capability in new, technology-driven platforms that address some of the world's most complex health challenges, including cancer.
"Today's announcement about the proposed acquisition of Endocyte builds on our growing capability in radiopharmaceuticals, which is expected to be an increasingly important treatment option for patients and a key growth driver for our business. We are also excited about the opportunity to break into the prostate cancer arena with a near-term product that has the potential to make a meaningful impact for patients in great need of more options."
Completion of the deal is expected in the first half of next year, subject to approval by Endocyte shareholders, antitrust and regulatory approvals and other customary closing conditions. Until then, Endocyte will continue to operate as a separate and independent company.