Novartis To Acquire Endocyte for $2.1 BillionBy
Novartis has agreed to acquire Endocyte, a West Lafayette, Indiana-based biopharmaceutical company developing targeted therapeutics for cancer treatment, for $24 per share, or a total equity value of approximately $2.1 billion, in cash. The transaction was unanimously approved by the Board of Directors of Endocyte.
Endocyte’s lead drug candidate is a-lutetium-based radioligand drug for treating metastatic castration-resistant prostate cancer in Phase III development. Endocyte also expects to have an investigational new drug application submitted in the fourth quarter of 2018 for its adaptor-controlled chimeric antigen receptor T-cell therapy, which will be studied initially in osteosarcoma.
Completion of the transaction is expected in the first half of 2019, subject to approval by Endocyte stockholders, antitrust and regulatory approvals, and other customary closing conditions. Until that time, Endocyte will continue to operate as a separate and independent company.
Earlier this year (January 2018), Novartis acquired Advanced Accelerator Applications (AAA), a Saint-Genis-Pouilly, France-headquartered radiopharmaceutical company, for $3.9 billion, a company also developing radiopharmaceuticals. AAA develops, produces, and commercializes molecular nuclear medicines, including a-lutetium-based therapy, Lutathera (177lu-dotatate), a regenerative laser-therapy product for treating neuroendocrine tumors, which was approved by the US Food and Drug Administration in January 2018. Novartis had earlier announced the acquisition in October 2017.