Novartis AG has agreed to acquire an experimental breast cancer drug from Synnovation Therapeutics for up to $3 billion, aiming to strengthen its oncology product pipeline. According to a statement released on Friday, the Swiss pharmaceutical giant will pay the U.S. biotechnology firm $2 billion upfront, with additional milestone payments of up to $1 billion, to acquire its Pikavation Therapeutics business, which is developing the potential therapy. The transaction is expected to be completed in the first half of this year, pending regulatory approval. This deal further supports CEO Vas Narasimhan’s strategy of expanding Novartis’s oncology portfolio with precision therapies. Based on analyst estimates compiled by the market, sales of Novartis’s existing drug Piqray, used to treat this type of breast cancer, are projected to decline by 9% this year to approximately $348 million. Vontobel analyst Stefan Schneider noted in a report that "adding a next-generation asset to the existing pipeline is a strategically meaningful move." Zürcher Kantonalbank analyst Urs Fritzsche described the transaction as a "positive first step," anticipating similar deals in the coming months. Both companies stated that the oral therapy targets HR+/HER2- breast cancer patients and is currently being evaluated in Phase 1/2 studies for breast cancer and other advanced solid tumors. Novartis indicated that the drug is designed to precisely target tumor cells while minimizing impact on normal cells, a strategy expected to "offer patients better tolerability and more durable benefits." As of Thursday, Novartis’s stock has risen 6.6% year-to-date. Synnovation is a privately held company.