(March 27): Novartis AG has agreed to acquire biotech firm Excellergy Inc for as much as US$2 billion, in a deal that will strengthen its portfolio of treatments for food allergies and other immunology conditions.
The transaction, which includes upfront and milestone payments, is expected to close in the second half of this year, subject to conditions including regulatory approvals, the Swiss drugmaker said in a statement.
Through the acquisition, Novartis will gain San Francisco-based Excellergy’s drug candidate Exl-111, an anti-IgE antibody currently in early stage clinical testing that complements the company’s existing allergy portfolio. IgE is key to treating a range of allergic diseases, triggering an exaggerated response to otherwise harmless substances.
While Novartis already co-markets the IgE-targeting asthma and allergy medicine Xolair, Exl-111 is “designed to go beyond conventional IgE therapy” with the potential to deliver faster and deeper response, as well as improved symptom control, said Fiona Marshall, president of biomedical research at the drugmaker.
That would make it a potential treatment for a range of diseases including food allergy, chronic spontaneous urticaria, chronic inducible urticaria and allergic asthma, according to the company.
Novartis has been on a deal streak to bolster its pipeline as its ageing best-sellers continue to face generic competition, prompting the company to project its first profit decline in at least six years. In October, it unveiled one of its biggest bets — a US$12 billion acquisition of Avidity Biosciences Inc, followed by deals around drugs for allergic diseases and breast cancer.
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