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Novartis plans to spend up to $3 billion to buy an experimental breast cancer drug from Delaware-based startup Synnovation Therapeutics.

As part of the deal to boost its oncology portfolio, the Swiss drugmaker will pay $2 billion upfront and another $1 billion of the therapy reaches certain milestones.

The partners announced the transaction announced March 20. Under the agreement, Novartis will purchase Synnovation subsidiary Pikavation Therapeutics.

Novartis has its U.S. headquarters in East Hanover. It expects the deal to close in the first half of this year.

The buy would hand Novartis an oral medicine called SNV4818 that is currently undergoing early-stage trials for treatment of HR+/HER2-metastatic breast cancer and other solid tumors.

According to Novartis, the pill targets mutated forms of PI3Ka. Alterations of this gene are implicated in a wide range of cancers – including an estimated 40% of patients whose breast tumors are hormone-receptor positive but don’t express the HER2 protein, the pharma giant said.

Biopharma Dive noted that Novartis already has an U.S. Food and Drug Administration-approved PI3Ka-inhibitor, called Piqray, that targets these mutations. However, this medicine, as well as rival treatments from companies like Roche, comes with associations of side effects like skin rashes, gastrointestinal issues and hyperglycemia.

As a next-generation drug, SNV4818 selectively targets the mutated forms of PI3Ka and spares the normal version found in healthy cells. Novartis said that should reduce unwanted side effects and allow for more “consistent dosing.”

The company also said patients could use SNV4818 alongside hormonal therapy and other treatments in earlier care.

Working with ‘new mutant selective chemistry’

Novartis President of Development Shreeram Aradhye commented, “While mutated PI3Ka is a well established driver in HR+/HER2 breast cancer, there remains a challenge in achieving effective pathway inhibition with a tolerable therapeutic profile.

“SNV4818 applies new mutant selective chemistry to more precisely target tumor biology while sparing normal cells. This approach has the potential to translate proven biology into improved tolerability and more durable benefit for patients through precision medicine.”

Synnovation CEO Wenqing Yao shared, “We believe Novartis’s global capabilities and commitment to patients with cancer will accelerate the development of SNV4818 for patients with PI3Kα mutation–driven solid tumors beyond what Synnovation could achieve alone.”

He added, “This acquisition reflects the strength of the Synnovation team and our drug discovery and development capabilities. We will continue advancing other promising programs in our R&D pipeline, including our selective PARP1 inhibitor, SNV1521, as well as additional oncology and immunology projects.”