Novartis to Buy Cancer-Drug Maker Endocyte for $2.1 Billion

Deal is latest by new chief executive to reshape Swiss pharmaceutical giant

Denise Roland and

Donato Paolo Mancini

Updated Oct. 18, 2018 4:10 a.m. ET

Novartis AG on Thursday said it would pay $2.1 billion for Endocyte Inc., a U.S. company developing a new treatment for prostate cancer, the Swiss pharmaceutical giant’s latest move to double down on high-value prescription drugs.

Endocyte specializes in so-called radiopharmaceuticals, a new class of drug that carries radioactive substances directly to cancer cells so they can kill tumor cells at close range.

The...