Novartis wraps up $2.1bn acquisition of US biopharma company Endocyte

Pharma acquisition news : Swiss pharma giant Novartis has wrapped up its previously announced acquisition of US biopharma company Endocyte in a deal worth around $2.1 billion.

Endocyte is engaged in the development of radioligand and CAR-T therapies for cancer treatment and its acquisition will help the Swiss pharma company expand its expertise in radiopharmaceuticals for the treatment of various types of cancers.

Novartis acquisition of Endocyte was announced in October 2018.

The completion of the acquisition follows approval from the shareholders of Endocyte earlier this week.

As per the terms of the deal, the Swiss pharma company acquired 100% of the shares of the US biopharma company at $24 per share.

Currently, Endocyte is developing targeted therapies with companion imaging agents such as Lu-PSMA-617 based on drug conjugation technology.

Lu-PSMA-617, which is an investigational radioligand therapy (RLT), is being targeted as a treatment of metastatic castration-resistant prostate cancer (mCRPC).

The investigational radioligand therapy, which has delivered promising phase 2 data, targets the prostate-specific membrane antigen (PSMA), which is found in most of the mCRPC patients.

Presently, Lu-PSMA-617 is being evaluated in a global phase 3 trial called VISION in male patients with mCRPC.

Endocyte is expected to expand its radioligand therapy platform of Novartis with a product that is likely to be launched in the market in the near future in addition to some early-stage clinical development treatments.

Novartis acquisition of Endocyte is also expected the Swiss pharma company to leverage its expertise in research and development to evaluate the potential development of Lu-PSMA-617 as an early treatment line for prostate cancer.