Endocyte (NASDAQ: ECYT) shares were due for a big day on Thursday after Swiss drugmaker Novartis (NYSE: NVS) agreed to buy the U.S.-based biopharmaceutical company for $2.1 billion.
Focusing on developing targeted therapeutics, Endocyte expands Novartis' platform with "both a potential near-term product launch and early-stage clinical development programs," Novartis said in a press release.
Novartis also raised its full-year sales outlook, citing growing revenue from its Cosentyx psoriasis and arthritis drug as well as the performance of its heart failure medicine Entresto, whose third-quarter sales more than doubled.
Novartis now expects sales to grow in the mid-single-digit percentage range at constant currencies, up from its previous forecast of low-to-mid-single-digit percentage rates.
Third-quarter core net income rose 2% to $3.1 billion, compared to the average analyst forecast of $3 billion in an economist poll. Sales rose 3% to $12.78 billion, compared to the average forecast of $12.84 billion in the poll.
According to Endocyte CEO Mike Sherman, "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."
Shares in ECYT came sprinting out of the blocks $7.94, or 51%, to $23.50 in Thursday’s first hour, while shares in Novartis that trade in New York gained $1.02, or 1.2%, to $86.39
