Novartis (NVS.US) Plans to Spend $3 Billion to Acquire Synnovation Therapeutics Breast Cancer Drug Assets

Pharmaceuticals APP has learned that Novartis (NVS.US) has agreed to acquire Synnovation Therapeutics for up to $3 billion to strengthen its oncology product pipeline.

According to a statement released on Friday, the Swiss pharmaceutical giant will pay $2 billion upfront, along with up to $1 billion in milestone payments, for the acquisition of its Pikavation Therapeutics business, which is developing this potential therapy.

The deal is expected to close in the first half of this year, pending regulatory approval. The transaction will further support CEO Vas Narasimhan’s strategy to expand Novartis’s oncology portfolio with precision therapies.

Market analysts expect that Novartis’s current drug for treating this type of breast cancer, Piqray, will see sales decline by 9% this year to approximately $348 million.

Vontobel analyst Stefan Schneider noted in a report, “Adding a next-generation asset to the pipeline is a strategically significant move.”

Urs Fritsche of Zürcher Kantonalbank stated that this deal is “a positive first step,” and similar transactions are expected to occur in the coming months.

Both companies said the oral therapy targets HR+/HER2- breast cancer patients and is currently in Phase 1/2 clinical trials for breast cancer and other advanced solid tumors.

Novartis stated that the drug aims to precisely target tumor cells while reducing effects on normal cells, a strategy that is expected to “bring better tolerability and more durable benefits for patients.”

As of Thursday, Novartis’s stock has risen 6.6% year-to-date. Synnovation is a private company.