Endocyte, Inc. ECYT on Thursday announced its $2.1-billion cash sale to Novartis AG NVS. The deal values Endocyte at $24 per share, representing a 54-percent premium from the firm’s $15.56 Wednesday closing price.
Why It’s Important
Endocyte's radioligand portfolio, currently in mid-stage trials for cancer treatment, will supplement Novartis’ oncology pipeline of 33 candidates. Altogether, the buyer boasts 99 candidates in various stages of development.
“We are thrilled that Novartis recognizes the potential for 177Lu-PSMA-617 to change the treatment landscape for men with metastatic castration-resistant prostate cancer (mCRPC), as well as the broader role that RLTs may potentially play in the treatment of cancer," Endocyte CEO and president Mike Sherman said in the press release. "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."
What’s Next
Endocyte’s board unanimously approved the transaction and expects completion in the first half of 2019 following a stockholder vote.
Endocyte shares were trading up 50 percent to $23.39 in Thursday's pre-market session.
Novartis shares were up about 1.1 percent following its Q3 earnings results.
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