Shares of Endocyte surge 50% on Novartis $2.1 billion deal

Endocyte shares opened about 50 percent higher on Thursday after Swiss drugmaker Novartis agreed to buy the U.S.-based biopharmaceutical company for $2.1 billion.

Focusing on developing targeted therapeutics, Endocyte expands Novartis’ platform with “both a potential near-term product launch as well as early-stage clinical development programs,” Novartis said in a press Discharge.

Novartis also raised its full-year sales outlook, citing growing revenue via its Cosentyx psoriasis as well as arthritis drug as well as the performance of its heart failure medicine Entresto, whose third-quarter sales more than doubled.

Novartis at This kind of point expects sales to grow within the mid-single-digit percentage range at constant currencies, up via its previous forecast of low-to-mid-single-digit percentage rates.

Shares of Novartis were over 1.5 percent higher during mid-morning deals on Thursday.

“We are very pleased with how the innovative medicines business will be performing, we are seeing strong growth on our key growth drivers Entresto as well as Cosentyx as well as across our oncology portfolio,” Vasant Narasimhan, CEO of Novartis, told CNBC’s “Squawk Box Europe” on Thursday.

Third-quarter core net income rose 2 percent to $3.1 billion, compared to the average analyst forecast of $3 billion in a Reuters poll. Sales rose 3 percent to $12.78 billion, compared to the average forecast of $12.84 billion within the poll.

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