Endocyte a biopharmaceutical company developing targeted therapeutics for cancer treatment, has entered into an agreement and plan of merger with Novartis, pursuant to which Novartis will acquire Endocyte for a total equity value of approximately $2.1 billion in cash. The transaction was unanimously approved by the board of directors of Endocyte.

“Since acquiring exclusive worldwide rights to develop and commercialize PSMA-617 agents in 2017, the entire Endocyte team, along with our partners, have worked tirelessly to build a leading radioligand (RLT) portfolio and create value for patients and shareholders alike. 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), as well as the broader role that RLTs may potentially play in the treatment of cancer,” said Mike Sherman, President and CEO of Endocyte. “The global reach and expertise of Novartis in developing and commercializing RLT therapies will be critical in efforts for patients to benefit from these therapies as quickly as possible.”

Completion of the transaction is expected in the first half of 2019, subject to approval by Endocyte stockholders, antitrust and regulatory approvals and other customary closing conditions. Until that time, Endocyte will continue to operate as a separate and independent company.

Centerview Partners is acting as lead financial advisor to Endocyte. Jefferies is also acting as financial advisor to Endocyte.  Faegre Baker Daniels LLP is acting as legal counsel to Endocyte.