The deal values the developer of cancer treatments at $24 a share, a 54% premium to Endocyte's closing price on Wednesday of $15.56.
Novartis will get its hands on Endocyte's promising Lu-PSMA-617, a radioligand treatment that targets prostate cancer by attaching radioactive Lutetium to cancerous cells.
"The proposed acquisition of Endocyte builds on our growing capability in radio-pharmaceuticals, which is expected to be an increasingly important treatment option for patients and a key growth driver for our business," said Novartis Oncology CEO Liz Barrett in a statement. "We are also excited about the opportunity to break into the prostate cancer arena with a near-term product that has the potential to make a meaningful impact for patients in great need of more options."
Endocyte shares rose more than 50% in premarket trading on Thursday to $23.39.
This story first appeared on TheStreet's sister site, The Deal, on Thursday.