Novartis AG to acquire US-based Endocyte for $2.1 billion

Novartis AG will acquire Endocyte Inc, a US-based cancer drugmaker, in an all-cash deal for $ 24 per share, or a total equity value of about $ 2.1 billion. This acquisition will expand the radiopharmaceuticals business of the Swiss drugmaker.

The US-based firm said that the deal will help develop a broader role for radioligand therapies in cancer treatment.

With this acquisition, Novartis will investigate the potential development of a drug candidate for use in earlier lines of prostate cancer therapy.

As part of the transaction, Endocyte will be merged with a newly-formed Novartis subsidiary. The deal is likely to be completed in the first half of 2019. Until then, Endocyte will continue to operate as a separate and independent firm.