Novartis will acquire all outstanding shares of Endocyte for $24 each, representing a premium of 54% to Endocyte’s closing price of $15.56 on Wednesday.
Endocyte shares closed on Thursday at $23.40, up 50.39% on the day.
Novartis said that, after completing the deal, it will harness its research and expertise to investigate the development of Endocyte's 177Lu-PSMA-617, a radioligand therapy for the treatment of metastatic castration-resistant prostate cancer.
"We are thrilled that Novartis recognizes the potential for 177Lu-PSMA-617 to change the treatment landscape for men with metastatic castration-resistant prostate cancer (mCRPC)," Endocyte CEO Mike Sherman said in a statement.
Endocyte is a biopharmaceutical company developing targeted therapies to treat canceer. The company is based in West Lafayette, Indiana.
Reporting by Rene Pastor, contactable on [email protected]