Investigation into Tourmaline Bio's Proposed Sale to Novartis AG

Kahn Swick & Foti, LLC is investigating the proposed sale of Tourmaline Bio, Inc. to Novartis AG, seeking to determine if the $48.00 per share price and the process that led to it are adequate. Shareholders who believe the transaction undervalues the company can contact KSF Managing Partner Lewis S. Kahn at 855-768-1857 or visit https://www.ksfcounsel.com/cases/nasdaqgs-trml/.

On September 9, 2025, Novartis AG (NVS) announced its agreement to acquire Tourmaline Bio Inc. (TRML) for $48.00 per share, valuing the deal at approximately $1.4 billion. This acquisition is part of Novartis' strategic realignment to bolster its sales and offset anticipated revenue pressure from generic competition.

Deal Structure and Valuation

The transaction is structured as an all-cash deal, with Novartis offering $48.00 per share, representing a 60% premium over Tourmaline's most recent closing stock price of around $30. The offer is contingent upon the tender of a majority of Tourmaline's shares and necessary regulatory approvals. The completion of the acquisition is expected in the fourth quarter of 2025 Novartis to Buy Tourmaline Bio for $1.4 B, Adding Inflammation Drug to Pipeline^[2].

Key Asset: Pacibekitug

The acquisition is centered around Pacibekitug, Tourmaline's lead investigational antibody targeting systemic inflammation, a major driver of cardiovascular disease. Pacibekitug showed up to 85% reduction in hs-CRP levels during a mid-stage clinical study, suggesting both potency and convenience. The drug is seen as a potential complement to Novartis' existing cardiometabolic portfolio Novartis to Buy Tourmaline Bio for $1.4 B, Adding Inflammation Drug to Pipeline^[2].

Financial Health and Valuation of Novartis

Novartis has demonstrated robust financial health, with strong revenue growth and profitability metrics. The company reported a revenue of $55.2 billion in 2024, reflecting a year-over-year growth of 13.1%. The company's operating margin of 30.19% and net margin of 24.68% indicate a high level of operational efficiency and profitability. The company's balance sheet is also strong, with a debt-to-equity ratio of 0.78, and the Altman Z-Score of 3.99 suggests financial stability Novartis (NVS) to Acquire Tourmaline Bio in $1.4 Billion Deal^[1].

Market Reaction

Following the announcement, Tourmaline's share price climbed nearly 58% in pre-market trading, reflecting the potential of Pacibekitug. Novartis' stock remained fairly stable, with analysts noting the deal's emphasis on cardiovascular innovation. The acquisition aligns with Novartis' strategic focus on high-growth therapeutic areas and its ability to convert revenue into profit effectively Novartis to Buy Tourmaline Bio for $1.4 B, Adding Inflammation Drug to Pipeline^[2].

Risk Assessment

While Novartis' financial health grades are strong, sector-specific risks, such as regulatory challenges and competitive pressures, remain pertinent. The stock's beta of 0.52 indicates lower volatility compared to the broader market, which may appeal to risk-averse investors Novartis (NVS) to Acquire Tourmaline Bio in $1.4 Billion Deal^[1].

Conclusion

The proposed acquisition of Tourmaline Bio by Novartis appears to be a strategic move aimed at strengthening Novartis' position in the healthcare sector. The acquisition's valuation and process are subject to further scrutiny by Kahn Swick & Foti, LLC, which is investigating the deal on behalf of shareholders who believe the transaction undervalues the company. Shareholders can contact KSF Managing Partner Lewis S. Kahn at 855-768-1857 or visit https://www.ksfcounsel.com/cases/nasdaqgs-trml/ for more information.