Novartis has sealed a £1.1 billion deal to acquire London-based biotech firm Myricx Bio, marking one of the largest investments in the UK life sciences sector this year. The acquisition of Myricx comes as pharmaceutical companies increasingly seek to bolster their pipelines with innovative treatments to combat patent expirations on existing drugs – a trend projected to result in losses worth approximately £350 billion over the next decade.
Myricx Bio, spun out from Imperial College London and the Francis Crick Institute in 2019, has pioneered an antibody-drug conjugate (ADC) platform. This cutting-edge technology allows for targeted chemotherapy delivery directly to cancer cells, potentially enhancing efficacy while minimising adverse side effects and overcoming resistance mechanisms that can emerge with current treatments. Novartis believes this acquisition will significantly enhance its oncology division and expand its portfolio of precision medicines, specifically highlighting the need for new payload mechanisms in ADC technology.
Dr Sean Conroy, a healthcare equity analyst at Shore Capital, notes that the deal is a prime example of pharmaceutical companies' willingness to invest substantial capital in external innovation as they navigate the impending 'patent cliff'. The transaction also underscores the UK's strong ecosystem for life sciences innovation, with successful exits like Myricx contributing to improved biotech valuations and a healthier funding environment within the sector.
Fiona Marshall, President of Biomedical Research at Novartis, underlines the critical role ADCs play in cancer treatment and the ongoing demand for new approaches to tackle resistance and broaden their impact on patients. This acquisition aligns with Novartis's strategy to scale innovative platforms aimed at delivering more durable and transformative treatments. Myricx chief executive Mohit Rawat describes the agreement as a significant endorsement of his company's technology and scientific team, expressing optimism about future collaborations with Novartis to advance cancer treatment.
The acquisition follows a successful £90 million funding round completed by Myricx in 2024, which attracted investment from prominent organisations including Novo Holdings, Eli Lilly, the British Business Bank, Cancer Research Horizons, and Sofinnova Partners. This prior investment reflects the confidence placed in Myricx's innovative approach and its potential to make a substantial impact in the fight against cancer.