Novartis to Acquire Endocyte for $2.1 Billion to Expand Radioligand Therapy Pipeline

On October 18, VCBeat (WeChat Official Account: vcbeat) learned from foreign media reports that global pharmaceutical giant Novartis announced it would acquire the biopharmaceutical company Endocyte for $2.1 billion. The two companies stated that the transaction would expand the buyer’s pipeline of radioligand therapy (RLT)-based targeted oncology treatments, including one Phase III candidate and several early-stage candidates.

Endocyte, founded in 1996, is a biopharmaceutical company primarily developing receptor-targeted therapies for cancer and inflammatory diseases. Endocyte’s lead candidate is 177Lu-PSMA-617, a first-in-class radioligand therapy (RLT) candidate for the treatment of metastatic castration-resistant prostate cancer (mCRPC). 177Lu-PSMA-617 primarily targets prostate-specific membrane antigen (PSMA), which is expressed in approximately 80% of mCRPC patients. 177Lu-PSMA-617 selectively delivers the short-range emitting radioisotope lutetium-177 (177Lu) to tumor cells while sparing healthy cells that do not express PSMA.

177Lu-PSMA-617 is currently being investigated in the Phase III global VISION trial (NCT03511664) for metastatic castration-resistant prostate cancer (mCRPC). As of October 15, the VISION trial had enrolled approximately 750 patients. The objective of the VISION trial is to compare overall survival (OS) in patients with progressive PSMA-positive mCRPC receiving 177Lu-PSMA-617 plus best supportive care/standard of care versus those receiving best supportive care/standard of care alone.

Regarding this acquisition, Novartis CEO Liz Barrett stated, “The acquisition of Endocyte was driven by our growing capabilities in radiopharmaceuticals. We are excited to leverage our recent product offerings to enter the prostate cancer field, which represents an increasingly important treatment option for patients and a key growth driver for our business.”

One year ago, Endocyte agreed to acquire an RLT candidate product from ABX for more than $172 million and refocused its R&D efforts on prostate cancer treatment. A year later, Novartis initiated plans to acquire Endocyte.

“Since acquiring the global exclusive rights to develop and commercialize PSMA-617 in 2017, the entire Endocyte team and our partners have been diligently building a leading radioligand therapy (RLT) portfolio to create value for patients and shareholders,” said Mike Sherman, President and Chief Executive Officer of Endocyte, in a company statement. “We are pleased that Novartis recognizes the potential of 177Lu-PSMA-617 to transform the treatment landscape for metastatic castration-resistant prostate cancer (mCRPC), as well as the broader and more effective role that RLTs can play in cancer therapy.”

The Board of Directors of Endocyte has unanimously approved the acquisition plan, which is expected to be completed in the first half of 2019. However, the transaction remains subject to approval by Endocyte’s shareholders, antitrust and regulatory authorities, as well as other customary closing conditions.

Novartis, the multinational healthcare corporation known as the Novartis Group, is one of the world’s top three pharmaceutical companies. Headquartered in Basel, Switzerland, it operates in more than 150 countries and regions worldwide and employs 138,000 people. Novartis China was established in 1997. The Novartis Group boasts a diversified business portfolio spanning innovative patented medicines, eye care, generic drugs, consumer health, and vaccines and diagnostics, maintaining a global leadership position across all these areas.