Novartis has announced that it has agreed to acquire the biopharmaceutical firm, and the deal price of $48 per share presents a premium of nearly 59% to Tourmaline’s last closing price.
Shares of Tourmaline Bio (TRML) jumped 58% in the pre-market session on Tuesday after Novartis (NVS) announced that it has agreed to acquire the smaller biopharmaceutical firm.
Under the deal, Novartis will commence a tender offer to purchase all outstanding shares of Tourmaline common stock through an indirect wholly owned unit. The deal price of $48 per share presents a premium of nearly 59% to Tourmaline’s last closing price and values the company at about $1.4 billion on a fully diluted basis. Following the closing of the tender offer, the unit will merge with Tourmaline, and the company will become an indirect wholly owned subsidiary of Novartis.
On Stocktwits, retail sentiment around TRML stock jumped from ‘bearish’ to ‘extremely bullish’ over the past 24 hours, while message volume rose from ‘high’ to ‘extremely high’ levels.
Meanwhile, sentiment around NVS stock fell from ‘Neutral’ to ‘Bearish territory, while message volume rose from ‘low’ to ‘normal’ levels.
Novartis stated that the acquisition includes Tourmaline’s Pacibekitug being developed as a treatment option for atherosclerotic cardiovascular disease or the build-up of fats, cholesterol, and other substances in and on the artery walls. Pacibekitug complements Novartis’ cardiovascular strategy, the company said, while noting that with mid-stage trials of Pacibekitug already well-advanced, the company will acquire a late-stage-ready asset.
“Inflammation is a major driver of cardiovascular disease, and the team at Tourmaline has made significant progress with this asset. We are excited to bring Pacibekitug into the Novartis portfolio and collaborate with the Tourmaline team to advance its development as we diversify our efforts in cardiovascular care,” said Shreeram Aradhye, Chief Medical Officer of Novartis.
The transaction has been unanimously approved by the Board of Directors of both companies. It is expected to close in the fourth quarter of 2025, subject to the satisfaction or waiver of customary closing conditions. Until the transaction is closed, the two companies will continue to operate as separate, independent entities, Novartis said.
TRML stock is up by 49% this year, while NVS stock gained over 32%.
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