News Article

Novartis has expanded its clinical pipeline through the back to back acquisitions of Pikavation Therapeutics and Excellergy.

The Swiss pharmaceutical giant is seeking to offset looming patent expiries for major brands such as Entresto and Promacta.

The first transaction involves the acquisition of Pikavation Therapeutics, a subsidiary of Synnovation Therapeutics, for $3bn. Under the definitive agreement, Novartis will pay $2bn upfront in cash with an additional $1bn tied to the achievement of development, regulatory, and commercial milestones.

The primary asset in this deal is SNV4818, an oral pan mutant selective PI3K alpha inhibitor currently in Phase 1/2 trials for HR+/HER2- metastatic breast cancer.

Following the Pikavation announcement, Novartis signed a second definitive agreement to acquire Excellergy, a private biotechnology firm focused on next generation immunology therapies. This deal is valued at up to $2bn in combined upfront and milestone payments.

The acquisition centres on Exl-111, a high affinity anti-IgE antibody currently in Phase 1 development for food allergies and other allergic conditions. The acquisition of Excellergy is expected to be finalised in the second half of 2026.

These strategic moves reflect a broader capital allocation strategy by Chief Executive Officer Vas Narasimhan to secure long term growth through disciplined bolt on acquisitions. It reinforces the commitment of Novartis to maintaining its leadership in oncology and immunology.

For investors, these transactions represent a pivot towards high value, mechanism driven assets that could provide multi-billion dollar revenue streams by the mid 2030s.