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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.