Novartis AG (ADR) (NYSE:NVS) has agreed to buy Tourmaline Bio in a $1.4 billion cash deal, strengthening its push into cardiovascular medicine with a late-stage anti-inflammatory drug candidate.
The Swiss pharmaceutical group will pay $48.00 a share, a 59% premium to Tourmaline’s closing price on Monday and 127% above its 60-day average.
Both boards have unanimously approved the transaction, which is expected to close in the final quarter of 2025, subject to regulatory clearance and other customary conditions.
Tourmaline’s lead asset is pacibekitug, a long-acting antibody that targets interleukin-6 (IL-6), a protein involved in inflammation.
The therapy is seen as a potential first-in-class treatment for reducing cardiovascular risk in patients with atherosclerotic cardiovascular disease, or ASCVD, a condition in which arteries harden due to plaque build-up.
Sandeep Kulkarni, co-founder and chief executive of Tourmaline, said: “Our mission at Tourmaline has been to establish new standards of care in areas of high unmet medical need, and today’s transaction announcement both underscores our commitment to that focus and also delivers compelling shareholder value.
"We are thrilled that Novartis, a company with deep roots and a commitment to innovation in the cardiovascular, renal, and metabolic disease space, will continue to advance this mission.”
Shreeram Aradhye, Novartis’s chief medical officer, said: “With no widely adopted anti-inflammatory therapies currently available for cardiovascular risk reduction, pacibekitug represents a potential breakthrough.
"Inflammation is a major driver of cardiovascular disease, and the team at Tourmaline has made significant progress with this asset.”
Pacibekitug has been studied in around 450 participants across six completed trials, including patients with autoimmune disorders.
Novartis said the acquisition would diversify its cardiovascular portfolio as it sought to expand beyond traditional cholesterol and blood pressure treatments.
Until the deal closes, Tourmaline will continue to operate independently.