Novartis completes $2.1bn acquisition of Endocyte to boost cancer treatment capabilities

Swiss pharmaceutical giant Novartis has officially closed its $2.1 billion acquisition of US-based biopharma company Endocyte, solidifying its position as a leader in radiopharmaceuticals for cancer treatment. The deal, first announced in October 2018, was finalised following shareholder approval earlier this week.

A strategic move into radioligand and CAR-T therapies

Endocyte specialises in developing radioligand and CAR-T therapies, offering advanced solutions for cancer treatment. Novartis, by acquiring 100% of Endocyte shares at $24 per share, aims to significantly expand its expertise in targeted therapies for cancer, with a particular focus on metastatic castration-resistant prostate cancer (mCRPC).

Key product: Lu-PSMA-617 and its potential

Endocyte’s flagship investigational therapy, Lu-PSMA-617, is central to this acquisition. This radioligand therapy (RLT) has shown promising phase 2 clinical results and targets the prostate-specific membrane antigen (PSMA) found in most mCRPC patients. The drug is currently undergoing a global phase 3 trial, known as the VISION study, which evaluates its efficacy in treating male patients with advanced prostate cancer.

The acquisition positions Novartis to integrate Lu-PSMA-617 into its radioligand therapy platform and accelerate its market readiness. The therapy, once approved, could potentially redefine treatment protocols for prostate cancer, with future evaluations exploring its role as an early-line treatment option.

Expanding Novartis’ radiopharmaceutical pipeline

Endocyte’s drug conjugation technology and companion imaging agents complement Novartis’ growing portfolio of radiopharmaceuticals. Beyond Lu-PSMA-617, Novartis anticipates leveraging Endocyte’s pipeline, including early-stage clinical developments, to broaden its innovative offerings for cancer treatment.

The acquisition underscores Novartis’ commitment to investing in cutting-edge therapies and its expertise in research and development, enabling it to push the boundaries of cancer care.

Expert perspective on Novartis’ growth strategy

Industry analysts see this acquisition as a bold step by Novartis to deepen its footprint in oncology, especially in radiopharmaceuticals, a rapidly evolving field. The move aligns with Novartis’ broader strategy to diversify its oncology portfolio and cater to unmet medical needs in cancer therapy.

With Endocyte’s targeted therapy capabilities and Novartis’ established R&D infrastructure, the collaboration is poised to deliver breakthroughs that could transform cancer treatment on a global scale.