Novartis (Novartis (NVS)) is making another big bet on cancer drugs. The Swiss pharma giant has agreed to buy privately held UK biotech Myricx Bio for up to $1.5 billion, adding a new type of antibody-drug conjugate (ADC) technology to its pipeline.

ADCs are essentially guided missiles for cancer: an antibody delivers a toxic payload directly to tumor cells, sparing healthy tissue. They've become a cornerstone of oncology, but many tumors eventually develop resistance to the payloads used today. Myricx thinks it has a solution.

Deal Terms

Novartis will pay $1.1 billion upfront to acquire Myricx, with up to $400 million more tied to hitting certain milestones. The transaction is expected to close during the second half of 2026.

A Novel ADC Platform Targets Resistant Tumors

Myricx's platform uses a payload that inhibits an enzyme called N-myristoyltransferase (NMT). This enzyme is critical for the proper functioning of proteins that help cancer cells grow and survive. By blocking NMT, the payload disrupts essential cellular processes that tumors depend on.

According to Novartis, this approach could address some of the limitations of widely used ADC payloads, such as TOPO-1 inhibitors. Preclinical data suggest the NMTi payload has broad activity across solid tumors, including models that are resistant to existing treatments.

Myricx is currently advancing two lead programs targeting B7-H3 and HER2, with potential applications across multiple solid tumor types.

Fiona Marshall, president of Biomedical Research at Novartis, said ADCs have become an important component of cancer treatment but noted there remains a need for new payload mechanisms that can overcome treatment resistance and expand patient benefit. She called Myricx's NMTi platform a differentiated approach that could broaden the use of ADCs across several tumor settings.

Technology Could Expand Future ADC Applications

If clinically validated, the platform could establish NMTi as a new class of ADC payloads that may be applied to additional drug targets and therapeutic platforms. Novartis sees this as a way to not only improve existing ADCs but also open up new possibilities for the technology.

NVS Price Action: Novartis shares were down 2.89% at $155.28 at the time of publication on Monday.