Endocyte anticancer drug provider increases 50% after Novartis agrees to buy it for $ 2.1 billion (ECYT, NVS)

Reuters

• The Swiss drug manufacturer Novartis has agreed to buy the US endocyte cancer treatment provider for $ 2.1 billion.
• Under this agreement, Novartis will pay $ 24 per share in cash for all outstanding shares of Endocyte's common shares.
• The endocyte stock exploded 50% to $ 23.48 as a result of the news.
• Watch the Endocyte and Novartis trade in real time.

Endocyte, a US provider of cancer treatment, exploded by 50% Thursday morning after announcing the conclusion of an agreement with the Swiss group. Novartis drug manufacturer.

Under this agreement, Novartis will acquire all outstanding shares of Endocyte common stock at a price of $ 24 each, for a total of $ 2.1 billion. The offer represents a 54% premium over Endocyte's closing price of $ 15.56 on Wednesday. The Endocyte shares traded at $ 23.48 on Thursday morning.

Novartis said that after the conclusion of this agreement, it will exploit its research and expertise to study the development of Endocyte. ¹⁷⁷Lu-PSMA-617, an experimental first-line experimental radioligand therapy in the class for the treatment of metastatic castration-resistant prostate cancer.

"We are pleased that Novartis recognizes the potential of ¹⁷⁷Lu-PSMA-617 will change the landscape of treatments for men with metastatic resistant prostate cancer, as well as the broader role that TCLs could play in the treatment of cancer, said the CEO of Endocyte, Mike Sherman, in a statement.

"Novartis' global reach and expertise in the development and commercialization of TCR therapies will be critical for patients to benefit from these therapies as quickly as possible."

Novartis shares jumped 1.31% and information changed little this year until Wednesday. The endocyte share has increased by 400% this year.

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