Novartis Acquires Excellergy for Up to $2 Billion
Novartis Acquires Excellergy, adding Exl-111 to its allergy pipeline and refocusing traders on IgE pipeline upside ahead of an expected H2 2026 close.
KEY TAKEAWAYS
- Novartis agreed to acquire Excellergy for up to $2.0 billion, adding Exl-111 to its allergy pipeline.
- Exl-111 is a half-life-extended anti-IgE ECRI in the Phase 1 DISARM trial of about 70 volunteers.
- Preclinical cynomolgus data showed >99.0% removal of receptor-bound IgE and ~95.0% FcεRI reduction.
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Novartis agreed on March 27, 2026, to acquire Excellergy, Inc., adding the early-stage anti-IgE candidate Exl-111 to its immunology portfolio. The acquisition complements Novartis’ expertise in IgE-targeting therapies and is expected to close in the second half of 2026.
Deal Terms and Clinical Data
Novartis announced the agreement to acquire Excellergy, a Palo Alto biotechnology company, in a press release confirmed minutes later by Excellergy. The transaction is valued at up to $2 billion, structured as upfront and milestone payments. Closing depends on customary conditions, including regulatory approvals.
Exl-111 is a half-life–extended, high-affinity anti-IgE antibody described as a trifunctional effector-cell response inhibitor (ECRI). It is engineered to dissociate receptor-bound IgE, downregulate FcεRIα, and suppress IgE signaling faster and more deeply than conventional therapies. This mechanism underpins Novartis’ rationale for adding the candidate to its allergy pipeline.
The candidate is in the Phase 1 DISARM trial (NCT07356713), a randomized, double-blind, placebo-controlled study of single and multiple ascending doses in about 70 healthy volunteers. The first subjects were dosed in early February 2026. The trial aims to assess initial safety and pharmacokinetics.
Preclinical data from cynomolgus monkeys showed more than 99% removal of receptor-bound IgE on basophils, approximately 95% reduction in FcεRI expression, and sustained free-IgE neutralization. Doses up to 100 mg/kg administered subcutaneously or intravenously were well tolerated, with no effector-cell activation or injection reactions observed.
The companies highlighted potential indications including food allergy, chronic spontaneous and inducible urticaria, allergic asthma, and possible pediatric uses, emphasizing the program’s broad strategic appeal.
Strategic Context for Novartis
Novartis framed the acquisition as an extension of its allergy franchise and a complement to its prior IgE-targeting therapies such as Xolair. The company cited the candidate’s mechanism as addressing unmet needs in IgE-driven conditions. Fiona Marshall, president of biomedical research at Novartis, said, "Excellergy adds a differentiated next-generation anti-IgE program."
This deal follows another multibillion-dollar acquisition by Novartis earlier in the week, involving up to $3 billion for a breast-cancer asset. Novartis’ materials include standard forward-looking statements noting clinical, regulatory, and integration risks as the program advances.
