Big Pharma Failure = Biotech Takeover?

Today's big winner in biotech was Endocyte (NASDAQ: ECYT  ) , up 7% on a case of schadenfreude. Its potential big pharma competitor GlaxoSmithKline (NYSE: GSK  ) decided to withdraw an expanded indication of its kidney cancer drug Votrient into ovarian cancer, because of phase 3 data that demonstrated benefit, but didn't pass the risk/benefit threshold for patients. Endocyte and its partner Merck (NYSE: MRK  ) , on the other hand, just received approval in Europe for their drug Vintafolide for ovarian cancer, in combination with chemotherapy and in conjunction with a complementary diagnostic test. The drug is in late-stage development in the U.S. for ovarian cancer, and also reported positive midstage results in lung cancer.

In this video, Motley Fool health-care analyst David Williamson looks at Endocyte, and the buyout rumors that have begun to swirl around the company as a result of this news. He notes that a successful cancer drug is clearly worth more than the company's $1 billion market cap, and names who the most likely possibilities are for prospective buyers.

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  • Report this Comment On April 02, 2014, at 10:39 AM, NVR2LATE4 wrote:

    Correction. It was NOT approved in Europe, just a CHMP positive opinion. Approval can occur 90 days post.

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