Shares of Swiss drugmaker Novartis (NVS) are slightly down in pre-market hours today after the company announced the acquisition of U.S.-based biotech company Excellergy for up to $2 billion. The deal aims to strengthen Novartis’ immunology portfolio, with a focus on food allergy treatments. The company stated that the transaction will include upfront and milestone payments, though it did not provide a detailed breakdown.
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For context, Swiss-based Novartis is focused on innovative medicines, generics, and eye care, with a strong global presence. Excellergy, meanwhile, specializes in immunology and food allergy therapies, offering a pipeline of growth-stage treatments.
What the Deal Means for Novartis
By acquiring Excellergy, Novartis strengthens its position in the food allergy immunology market. Excellergy’s lead drug candidate is in early-stage testing and targets the Immunoglobulin E (IgE) antibody, which is linked to conditions such as asthma and eczema. Novartis said the therapy could improve symptom control for food allergies, hives, and other IgE-driven conditions.
Vontobel analyst Stefan Schneider pointed out that because Excellergy’s drug is still in early Phase 1 testing, most of the deal payments will likely come later, tied to the drug’s progress.
Novartis Ramps Up Acquisitions as Generic Threats Rise
Novartis has been pursuing a string of acquisitions as its top-selling drugs face generic competition. As a result, the company forecasts its first annual drop in operating profit in a decade.
In February, the company said its 2026 operating profit, adjusted for one-offs, is expected to fall by a low single-digit percentage, excluding currency effects. Three blockbuster drugs—Entresto, Promacta, and Tasigna—lost their U.S. patent exclusivity in mid-2025, which Novartis said is the main reason for its projected short-term profit decline.
This latest acquisition follows just a week after Novartis agreed to acquire an experimental breast cancer therapy from Synnovation Therapeutics for up to $3 billion.
Is Novartis a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NVS stock based on three Buys and four Holds assigned in the past three months. The average Novartis price target of $169.42 per share implies a 13.17% upside potential.
