Novartis (NVS), the Swiss pharma giant, said on Tuesday it will acquire Tourmaline Bio (TRML) for $48 per share, valuing the New York-based biopharma at $1.4 billion. The deal highlights Novartis’ push to expand in cardiovascular medicine, a key focus area for the company.
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Tourmaline’s lead asset is pacibekitug, a therapy designed to lower inflammation linked to atherosclerotic cardiovascular disease (ASCVD). The drug is viewed as a promising option for patients at high risk of blocked arteries and heart attacks. Novartis said pacibekitug is ready for Phase III trials and will fit well with its existing drugs for heart conditions.
Boards Approve, Deal Set to Close in Q4
Both companies’ boards have unanimously approved the deal. Novartis will launch a tender offer to purchase all outstanding shares of Tourmaline stock at the agreed price. After completion, Tourmaline will become an indirect, wholly owned subsidiary of Novartis. The deal is expected to close in the fourth quarter of 2025, subject to customary conditions.
Novartis said adding pacibekitug will strengthen its range of drugs that help prevent major heart events. With heart disease still a leading cause of death worldwide, the buyout gives Novartis a late-stage program that could boost its edge in this market.
Is NVS Stock a Buy or Sell Now?
Overall, Wall Street is cautiously optimistic on Novartis stock, with a Hold consensus rating based on three Holds. The average NVS stock price target of $104.00 indicates 19.20% downside potential from current levels.
