With little fanfare, Swiss drug maker Novartis AG (NYSE: NVS) bagged Endocyte, Inc. (NASDAQ: ECYT) for $2.1 billion, or $24.00 per share. The price represents a 54% premium to Endocyte’s closing price on October 17, 2018, the day before this deal was announced.
Endocyte, a biopharmaceutical company based in Indiana, develops targeted therapies for the treatment of cancer and inflammatory diseases. The company uses drug conjugation technology to develop targeted therapies with companion imaging agents, including one that is a potential first-in-class investigational radioligand therapy (RLT) for the treatment of metastatic castration-resistant prostate cancer. It’s currently in the Phase 3 global VISION clinical trial.
If completed, this acquisition would expand the Novartis RLT platform with both a potential near-term product launch and early-stage clinical development programs.
Endocyte’s most recent quarter showed it generated revenue of $75,320, and a net loss of $52 million on a trailing 12-month basis. Shares surged from $15.54 at closing on October 17 to $23.43 by mid-afternoon on October 19.