Novartis Stock (NVS) Climbs after Paying $3B for “Mutant”- Fighting Breast Cancer Drug

Shares in Swiss drugmaker Novartis NVS -1.08% ▼ were slightly healthier today after it bought an experimental “mutant”- fighting breast cancer drug from U.S. biotech firm Synnovation Therapeutics for $3 billion.

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Experimental Oral Drug

Novartis said it would pay Synnovation $2 billion upfront and up to $1 billion contingent on achieving certain milestones to acquire Pikavation Therapeutics, Inc., a wholly- owned subsidiary of Synnovation that holds a portfolio of pan-mutant selective PI3Kα inhibitor programs.

Indeed, the experimental oral drug, SNV4818, belongs to this class of selective PI3Kα ​inhibitors, a new approach for the treatment of a type ​of breast cancer known as HR-positive/HER2-negative and potentially other solid tumours. It is the most common form of breast cancer.

It is currently being evaluated in a Phase 1 and 2 study.

Novartis said that the biology of mutated PI3Kα in HR+/HER2- breast cancer is well-understood, with approximately 40% of HR+/HER2- breast cancer patients potentially facing worse disease prognosis due to the presence of PIK3CA mutations in their tumors.

Spares Healthy Cells

Synnovation’s drug targets only the mutated form of PI3Kα, an enzyme that often malfunctions in breast and other forms of cancer, while sparing ​the normal ​version found in ⁠healthy cells.

“While mutated PI3Kα is a well‑established driver ​in HR+/HER2‑ ⁠breast cancer, there remains a challenge in achieving effective pathway inhibition with a tolerable therapeutic profile,” said Shreeram Aradhye, Novartis’s ​chief medical officer. “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.”

Novartis expects the deal, which it said would further strengthen its breast cancer pipeline, ​to close in the first half of this year.

Is NVS a Good Stock to Buy Now?

On TipRanks, NVS has a Hold consensus based on 1 Buy and 4 Hold ratings. Its highest price target is $180. NVS stock’s consensus price target is $167, implying a 12.69% upside.

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