Please login to the form below

Not currently logged in
Email:
Password:

Novartis buys cancer specialist Endocyte for $2.1bn

Acquisition includes 'universal' CAR-T platform

Novartis Basel

Novartis has agreed another bolt-on deal to boost its pipeline, buying nuclear medicine firm Endocyte for $2.1bn as it raised its sales forecasts for the year on a strong third quarter.

The $24-per-share offer – around $8.50 above Endocyte’s closing share price yesterday – has the backing of the biotech’s board, but still needs the approval of its shareholders.

Novartis wants to merge the company with a newly-formed subsidiary that will focus on radiopharmaceutical drugs for cancer, with Endocyte’s portfolio blended with in-house assets such as Lutathera (177Lu- oxodotreotide) for gastroenteropancreatic neuroendocrine (GEP-NET) tumours, acquired along with French company Advanced Accelerator Applications for $3.9bn a year ago.

Heading up Endocyte’s pipeline is 177Lu-PSMA-617, a potential first-in-class drug for the treatment of metastatic castration-resistant prostate cancer (CRPC). The drug targets prostate-specific membrane antigen (PSMA), which is expressed on prostate cancer cells, and delivers a cell-killing radioisotope directly to the tumour. It is currently in a phase 3 registration trial – called VISION – that is due to report results in 2020.

Novartis said radiopharma is a “key growth driver” for its business  and that Endocyte’s offer “significant sales potential” from 177Lu-PSMA-617, particularly if its use can be extended into earlier-stage prostate cancer, as well as early-stage development programmes.

The latest deal comes shortly after Novartis agreed a $8.7bn deal to acquire AveXis, a US specialist in spinal muscular atrophy (SMA).

It’s worth pointing out that buying Endocyte also gives Novartis an additional platform in CAR-T cancer immunotherapy to complement its current assets, including already-marketed therapy Kymriah (tisagenlecleucel) for CD19-positive blood cancers. Endocyte has developed an approach that could be used to generate a single, universal CAR-T therapy for multiple cancer types which is currently in preclinical development.

Cosentyx

Cosentyx saw its sales rise 37%

News of the latest bolt-on deal came as Novartis revealed a 6% rise in third-quarter sales to $12.8bn in constant currencies on the back of gains for new psoriasis drug Cosentyx (secukinumab) and Entresto (sacubitril/valsartan) for heart failure – up 37% to $750m and 113% to $271m, respectively – as well as Sandoz’ biosimilar drugs.

Lutathera brought in $56m as it continues to roll out in the US following FDA approval in January, which Novartis said was a good performance, but while CAR-T Kymriah saw sales last triple year-on-year they remained low at $20m, up from $16m in the second quarter. The company has been working to resolve product consistency issues that have disrupted supplies.

18th October 2018

From: Sales

Share

Tags

Featured jobs

Subscribe to our email news alerts

PMHub

Add my company
Merrill Brink International

Merrill Brink International is a leading provider of life sciences, legal, financial, manufacturing and corporate language solutions for global companies....

Latest intelligence

Empowered patients: shaking the foundations of healthcare
Precision medicine represents a new paradigm in healthcare.This new approach to treating and preventing disease views the patient holistically, analysing their genes, environment and lifestyle, and using this information to...
A uniquely English genomic medicine service
The UK National Health Service is developing one standardised approach to embedding precision medicine across the whole of England. Blue Latitude Health speaks to Dr Tom Fowler, Deputy Chief Scientist...
Blended Intelligence
Data is the most valued commodity of the modern world. For P&P it's all about the application....

Infographics