Novartis to acquire US-based cancer drugmaker Endocyte for $2.1 billion

Novartis AG agreed to buy cancer drugmaker Endocyte for $2.1 billion, or $24 a share, expanding further into the increasingly competitive and lucrative field of oncology.

Endocyte, based in the U.S., makes radioactive drugs coupled with molecules that target specific cells to deliver treatments to tumors. The offer is a 54 per cent premium to the biotech’s closing price Wednesday of $15.56.

Key Insights
 

• The planned purchase adds to Chief Executive Officer Vasant Narasimhan’s plans for expansion. Novartis earlier this year announced the purchase of rare-disease drugmaker AveXis Inc. for $8.7 billion.

• Endocyte’s therapy, known as Lu-PSMA-617, has shown promising mid-stage