Novartis is Buying Endocyte for $2.1 Billion

Pharmaceutical giant Novartis is making a big purchase. The Swiss company is purchasing U.S. Endocyte for $2.1 billion.

Endocyte is currently conducting clinical trials for radiopharmaceuticals, which are drugs that help diagnose and target tumors. These radiopharmaceuticals could be used to treat men with metastatic castration-resistant prostate 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,” said Novartis Oncology CEO Liz Barrett.

“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.”

“The global reach and expertise of Novartis in developing and commercializing [radioligand] therapies will be critical in efforts for patients to benefit from these therapies as quickly as possible,” stated Endocyte CEO Mike Sherman.

The deal is expected to close in the firt half of 2019 and is pending approval by regulators and Endocyte’s shareholders.

Disclaimer: We have no position in Novartis AG (NYSE: NVS) and have not been compensated for this article.