Novartis to acquire Excellergy for up to $2B in allergy push
Deal adds experimental anti-IgE therapy to Swiss drugmaker's immunology portfolio amid competitive landscape for food allergy treatments
Novartis has agreed to acquire Excellergy for up to $2 billion, marking the Swiss drugmaker's latest push to strengthen its immunology portfolio with next-generation treatments for food allergies and other IgE-driven diseases.
The Basel-based company will pay an undisclosed upfront amount plus milestone payments for the Boston-based biotechnology company, whose lead asset Exl-111 is currently in Phase 1 development. The transaction is expected to close in the second half of 2026, pending regulatory approvals.
Exl-111 is a half-life extended, high-affinity anti-IgE antibody designed to go beyond conventional therapies by dissociating receptor-bound IgE, potentially offering faster and deeper suppression of IgE signaling with improved symptom control. The experimental treatment targets a range of IgE-mediated conditions including food allergy, chronic spontaneous urticaria, chronic inducible urticaria, and allergic asthma.
"Excellergy adds a differentiated next-generation anti-IgE program that builds on biology Novartis knows well," said Fiona Marshall, President of Biomedical Research at Novartis. "This proposed acquisition strengthens our allergy portfolio and reflects our strategy of advancing innovative bold science to bring meaningful additional benefits to patients."
The deal represents approximately 0.7% of Novartis's $287 billion market capitalization, positioning it as a digestible bolt-on acquisition that fits within the company's broader strategy to bolster its immunology pipeline. Novartis already has established expertise in IgE biology and an existing presence in allergic disease treatments.
Analysts have offered mixed views on Novartis's trajectory. BofA analyst Sachin Jain raised the company's price target to $178 from $163 while maintaining a Buy rating, projecting Novartis's revenues could exceed $68 billion by 2030 with new assets contributing more than $27 billion.
However, Bernstein initiated coverage with a Market Perform rating and a CHF 125 price target, anticipating annual sales declines between 2031 and 2036 as patent expirations loom for key products. The divergent analyst outlooks reflect broader challenges facing large pharmaceutical companies balancing near-term patent cliffs with long-term pipeline investments.
Novartis shares traded at $149.70 on March 27, down 0.7% on the day. The stock has gained more than 12% over the past year, supported by the company's strategic pivot toward higher-growth therapeutic areas including immunology, neuroscience, and oncology.
The Excellergy acquisition comes amid intense competition in the food allergy treatment space. Several companies, including Regeneron and Sanofi, are developing therapies targeting IgE-mediated conditions, reflecting growing demand for treatments that can address severe food allergies affecting millions of patients worldwide.
Novartis reported trailing twelve-month revenue of $56.7 billion with a profit margin of 24.7%. The company maintains a dividend yield of 3.2% and has 10 analysts rating it a hold, compared to three buy ratings and three sell ratings, according to recent consensus data.
The acquisition strategy aligns with broader industry trends as pharmaceutical companies seek to replenish pipelines facing patent expirations through strategic acquisitions of biotechnology companies with promising clinical-stage assets. Novartis has been particularly active in immunology, viewing the therapeutic area as a key growth driver for the remainder of the decade.