Tourmaline jumps 57% after Novartis to buy firm for $1.4B

Tourmaline jumps 57% after Novartis to buy firm for $1.4B

Swiss pharmaceutical giant Novartis AG (NVS) has announced the acquisition of Tourmaline Bio Inc. (TRML) for approximately $1.4 billion in cash. The deal, which has been approved by the boards of both companies, is expected to close in the fourth quarter of 2025 [2].

The acquisition price of $48 per share represents a 59% premium to Tourmaline's closing price on September 8, 2025, the last trading day before the announcement. This premium has driven Tourmaline's stock price to jump by 57% in after-hours trading, closing at $55.95 [3].

Tourmaline's lead drug candidate, pacibekitug, is a long-acting antibody targeting the IL-6 protein, believed to play a key role in cardiovascular inflammation. The drug has shown potential in reducing inflammation tied to heart disease, as evidenced by mid-stage trial data released in May [5].

Novartis, through this acquisition, aims to bolster its biotechnology pipeline and enhance its competitive edge in the sector. The deal underscores the potential of pacibekitug, which could represent a breakthrough in addressing residual inflammatory risk in atherosclerotic cardiovascular disease (ASCVD) [4].

Analysts have provided mixed projections for Novartis. The average one-year price target for Novartis AG is $117.31, with a range of estimates from $100.00 to $134.00 [1]. The consensus recommendation from brokerage firms is a "Hold," reflecting a neutral outlook among analysts [1].

GuruFocus estimates a GF Value of $133.14 for Novartis AG, suggesting a potential 3.44% upside from its current trading price of $128.71 [1].

References:

[1] https://www.gurufocus.com/news/3100274/novartis-nvs-acquires-tourmaline-bio-for-14-billion-in-cash
[2] https://www.investing.com/news/stock-market-news/novartis-to-acquire-tourmaline-bio-for-14-billion-4230459
[3] https://www.nasdaq.com/articles/tourmaline-bio-agrees-be-acquired-novartis-14-bln-deal-stock
[4] https://seekingalpha.com/news/4493234-novartis-to-acquire-tourmaline-bio-in-14b-all-cash-deal
[5] https://www.statnews.com/2025/09/09/novartis-tourmaline-bio-heart-disease-acquisition-pacibekitug/