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.

6 stock picks poised for incredible growth
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • 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.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2897645, ~/Articles/ArticleHandler.aspx, 8/29/2015 5:02:08 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

David Williamson

The Motley Fool's Healthcare Analyst, I specialize in Pharma, Biotech, and how the ACA (Obamacare) is changing the business of healthcare in America. Follow me on Twitter for breaking stock news, policy thoughts, and misc musings...

Today's Market

updated 19 hours ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:00 PM
ECYT $5.28 Up +0.09 +1.73%
Endocyte, Inc. CAPS Rating: ****
GSK $41.25 Up +0.04 +0.10%
GlaxoSmithKline CAPS Rating: ****
MRK $55.37 Up +0.42 +0.76%
Merck & Co., Inc. CAPS Rating: ****