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.