Novartis to Buy Tourmaline Bio for $1.4 B, Adding Inflammation Drug to Pipeline

Mumbai, September 10, 2025: Swiss drugmaker Novartis AG has reached an agreement to purchase the New York-based firm, Tourmaline Bio Inc., in a deal valued at a staggering $1.4 billion. This move is aimed at reducing systemic inflammation, which is termed a major driver of cardiovascular disease.

Novartis has been on the lookout for deals that would amplify its sales beyond 2025. Currently, the company is staring at stiff competition arising from cheap generics for three of its star performers, including its top-selling heart medicine Entresto.

Deal Structure and Valuation

What is seen as an all-cash transaction, Novartis is expected to pay $48 per share, which roughly represents a 60% premium over Tourmaline’s most recent closing stock price of around $30. The management of both companies, Novartis and Tourmaline, will look into the approvals. Once received, the acquisition will likely be closed by the last quarter of 2025. Soon after, Tourmaline will become an indirect, wholly owned subsidiary.

Key Asset: Pacibekitug

The entire acquisition is centred around Pacibekitug, which is Tourmaline’s lead investigational antibody. Addressing systemic inflammation, a driver of atherosclerotic cardiovascular disease (ASCVD), the therapy essentially targets interleukin-6 (IL-6). When given a dose quarterly, pacibekitug showed up to 85% reduction in hs-CRP levels during a mid-stage clinical study. This strongly suggests both potency and convenience. Moreover, the drug is also seen as a potential complement to Novartis’ existing cardiometabolic portfolio.

Strategic Fit for Novartis

As part of its strategic realignment, the company recently expanded its pipeline through various other partnerships and acquisitions, including the acquisition agreement of Regulus Therapeutics, valued at $1.7 billion, earlier this year. The addition of Tourmaline’s assets helps Novartis offset anticipated revenue pressure from generic competition against its current drugs.

Market Reaction

Soon after the news of the acquisition was announced, there was a ripple effect in the shares of Tourmaline Bio. The share price climbed nearly 58% in pre-market trading. Novartis’ stock, on the other hand, remained fairly stable. Analysts noted the price paid reflects the potential of Pacibekitug and highlighted Novartis’ global scale to advance the drug through late-stage trials and commercialization. The deal emphasizes Novartis’ focus on cardiovascular innovation, an area with rising demand worldwide.

Disclaimer:At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations.