Switzerland-based multinational pharmaceutical company Novartis is acquiring Nasdaq-listed Tourmaline Bio, a US-based clinical-stage biopharmaceutical company focused on developing pacibekitug, an anti-IL-6 mAb, as a treatment option for atherosclerotic cardiovascular disease.
Holders of Tourmaline common stock will receive US$48 per share in cash for a total equity value of approximately US$1.4bn. This represents a premium of 59% to Tourmaline’s closing stock price on 8 September and 127% to Tourmaline’s 60-day VWAP.
Tourmaline’s share price jumped on the news. It closed at US$30.18 on 8 September and has so far reached a high of US$47.64 in today’s trading.
Leerink Partners is serving as exclusive financial advisor to Tourmaline, and Cooley is serving as legal counsel.
Cardio complement
The addition of Pacibekitug complements Novartis’ cardiovascular strategy by targeting IL-6, a key upstream cytokine that promotes systemic inflammation. With Phase 2 trials already advanced, Novartis gets a Phase 3 ready asset.
“With no widely adopted anti-inflammatory therapies currently available for cardiovascular risk reduction, pacibekitug represents a potential breakthrough in addressing residual inflammatory risk in ASCVD with a differentiated mechanism of action targeting IL-6,” said Shreeram Aradhye, president, Development and Chief Medical Officer, Novartis.
Earlier in the year, Novartis strengthened its focus in the cardiovascular space with the acquisition of Anthos Therapeutics, a clinical-stage biopharmaceutical company, for up to US$3.1bn. The acquisition included abelacimab, a late-stage medicine in development for the prevention of stroke and systemic embolism in patients with atrial fibrillation. Anthos had advanced abelacimab through clinical development under a license from Novartis.