Swiss pharmaceutical giant Novartis has agreed to buy California-based biotech firm Excellergy Inc. in a deal worth up to $2 billion in upfront and milestone payments. The acquisition adds Exl-111, a half-life extended, high-affinity anti-IgE antibody currently in Phase 1 trials, to expand Novartis’ leadership in treating IgE-driven diseases such as food allergies and allergic asthma.
Glimpse:
Announced on March 27, 2026, the transaction is expected to close in the second half of 2026, subject to regulatory approvals. Excellergy, based in Palo Alto, develops next-generation anti-IgE therapies. The deal builds on Novartis’ successful blockbuster Xolair (omalizumab), which is already approved for allergic asthma and food allergies, by adding a potentially longer-acting candidate designed to better disarm allergic effector cells.
Novartis has entered into an agreement to acquire Excellergy Inc., a privately held biotechnology company specializing in next-generation therapies for IgE-driven allergic diseases. The proposed deal, valued at up to $2 billion through a combination of upfront and milestone payments, aims to reinforce Novartis’ position in immunology and allergy treatment. Excellergy’s lead asset, Exl-111, is a half-life extended, high-affinity anti-IgE monoclonal antibody currently undergoing Phase 1 clinical trials. This candidate is designed to offer improved efficacy and dosing convenience compared to existing options by more effectively inhibiting allergic responses at the source.
The acquisition strengthens Novartis’ established anti-IgE franchise, which is anchored by its blockbuster drug Xolair (omalizumab). Xolair is widely used for allergic asthma and has also received approval for treating food allergies in both children and adults. By incorporating Exl-111 and other potential assets from Excellergy’s pipeline focused on trifunctional effector cell response inhibitors, Novartis seeks to address a broader range of IgE-mediated conditions, including food allergies and other severe allergic disorders. The move aligns with the company’s strategy to enhance its immunology portfolio and increase its focus on innovative treatments in the United States market.
Excellergy, headquartered in Palo Alto, California, emerged as a notable player in allergy therapeutics after raising significant funding in late 2025. The company’s approach aims to redefine standards in allergy care by developing therapies that provide more sustained control over allergic reactions. Upon completion of the deal, Novartis will integrate Excellergy’s expertise and pipeline to accelerate development and bring next-generation options to patients facing limited treatment choices today.
This transaction represents the latest in a series of strategic moves by Novartis to bolster its research and development pipeline through targeted acquisitions. Industry observers view the deal as a timely investment in allergy innovation, especially as demand grows for more convenient and effective therapies amid rising prevalence of allergic conditions worldwide. The agreement is subject to customary closing conditions and regulatory clearances, with completion anticipated in the second half of 2026.
“The proposed acquisition adds Exl-111, a half-life extended, high-affinity anti-IgE antibody in Phase 1. This builds on our long-standing leadership in allergic disease and strengthens our immunology strategy in food allergy and other IgE-driven diseases.”
By
HB Team
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