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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David Williamson owns shares of Merck. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.