BMO Capital analyst Kostas Biliouris downgraded the rating on Tourmaline Bio to a Hold today, setting a price target of $48.00.
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Kostas Biliouris has given his Hold rating due to a combination of factors surrounding the acquisition of Tourmaline Bio by Novartis. The definitive agreement for Novartis to acquire Tourmaline Bio for approximately $1.4 billion has led to the downgrade from an Outperform to a Market Perform rating. This acquisition is expected to close smoothly by the fourth quarter of 2025, with no significant antitrust issues anticipated due to the lack of overlapping IL-6-targeted ASCVD programs in Novartis’ pipeline.
Tourmaline Bio’s lead product, Pacibekitug, is a fully human monoclonal antibody targeting interleukin-6, a cytokine involved in autoimmune and inflammatory disorders. Despite its promising characteristics, such as high binding affinity, long half-life, and potential best-in-class properties, the acquisition by Novartis has influenced the Hold rating. The $48 target price reflects the agreed acquisition price, aligning with the expected market performance post-acquisition.
Biliouris covers the Healthcare sector, focusing on stocks such as Sarepta Therapeutics, Centessa Pharmaceuticals, and Legend Biotech. According to TipRanks, Biliouris has an average return of -0.5% and a 42.05% success rate on recommended stocks.
In another report released on September 10, Truist Financial also downgraded the stock to a Hold with a $48.00 price target.