Endocyte Inc shares soar after Novartis pays $2.1 billion for company, shares finish over 50% higher

Endocyte Inc (NASDAQ:ECYT) shares rallied by more than 50% by the close of trade on Thursday after it announced it was being bought by Novartis AG for $2.1 billion in cash.

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.

READ: Endocyte shares climb after positive FDA meeting as Wedbush raises price target

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]

Story by ProactiveInvestors