Swiss pharmaceutical giant Novartis has agreed to buy London-based biotech Myricx Bio for up to $1.5bn (£1.1bn) as global drugmakers continue deploying billions into promising biotech firms ahead of an estimated $450bn wave of patent expiries over the next decade.
The deal will see Novartis pay $1.1bn upfront, with a further $400m tied to development milestones, for the Imperial College London spinout, which is developing next-generation antibody-drug conjugate (ADC) technology for cancer treatment.
Dr Sean Conroy, healthcare equity analyst at Shore Capital, told City AM: “Novartis’ acquisition of Myricx is further evidence that pharma companies remain willing to deploy significant capital into external innovation as they seek to address a circa $450bn patent cliff we estimate they will have to navigate through the next decade.”
“Furthermore, this transaction highlights that the UK remains a world-class incubator of life sciences innovation, and successful exits such as this have helped to underpin improving biotech valuations and a healthier funding environment.”
UK innovation attracts global buyers
Founded in 2019 as a spinout from Imperial College London and the Francis Crick Institute, Myricx has developed a new platform for antibody-drug conjugates, one of the pharmaceutical industry’s fastest-growing areas of oncology research.
The company’s technology is designed to improve the effectiveness of targeted cancer medicines while reducing side effects and overcoming resistance that can develop with existing treatments.
Novartis said the acquisition would strengthen its oncology pipeline and broaden its portfolio of precision medicines: “ADCs have become an important part of cancer treatment, but there remains a clear need for new payload mechanisms to overcome resistance and expand their impact for patients,” said Fiona Marshall, president of biomedical research at Novartis.
“This proposed acquisition reflects our strategy to scale innovative platforms to deliver more durable, transformative treatments for patients.”
Myricx chief executive Mohit Rawat described the agreement as “a tremendous endorsement” of the company’s tech and scientific team.
“Together with Novartis, we look forward to building upon our work to transform the landscape of cancer treatment,” he said.
The buy follows a £90m funding round completed by Myricx in 2024 backed by investors including Novo Holdings, Eli Lilly, the British Business Bank, Cancer Research Horizons and Sofinnova Partners.
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