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Investing.com - Wedbush downgraded Tourmaline Bio (NASDAQ:TRML) from Outperform to Neutral with a price target of $48.00 following the announcement of Novartis’ proposed acquisition of the company. The stock has shown remarkable momentum, gaining over 109% in the past six months and currently trading near its 52-week high of $30.59, according to InvestingPro data.
Novartis and Tourmaline Bio announced an agreement for Novartis to acquire Tourmaline for $1.4 billion, or $48 per share in cash. The transaction, which has been approved by the boards of both companies, contains no contingent value rights and is expected to close in the fourth quarter of 2025. Tourmaline brings strong financial health to the deal, with a current ratio of 24.68 and more cash than debt on its balance sheet.
Wedbush noted the timing of the acquisition makes sense given Tourmaline’s recent TRANQUILITY data and preparations for Phase 3 studies. The firm views Novartis as a logical partner with deep cardiometabolic expertise that can advance pacibekitug, Tourmaline’s IL-6 asset.
Tourmaline recently reported that quarterly pacibekitug dosing demonstrated an 85% median lowering of high-sensitivity C-reactive protein (hsCRP) after 90 days of treatment, which was in-line with competitor ziltivekimab at a monthly dose.
While Wedbush believes other strategic buyers likely have interest in the IL-6 asset, the firm considers Novartis’ offer a fair and full price in line with their target, prompting the downgrade to Neutral. Get deeper insights into biotech valuations and discover more trading opportunities with InvestingPro, which offers 15+ additional exclusive tips for TRML and comprehensive financial analysis tools.
In other recent news, Novartis has announced its decision to acquire Tourmaline Bio for approximately $1.4 billion. This acquisition is set to be executed at $48 per share in cash. Through this deal, Novartis will gain access to Tourmaline’s promising drug, pacibekitug, which is currently in late-stage development. Pacibekitug is an anti-IL-6 monoclonal antibody designed to target systemic inflammation, a significant factor in atherosclerotic cardiovascular disease. This strategic move is part of Novartis’s broader efforts to strengthen its cardiovascular portfolio. The acquisition highlights Novartis’s commitment to expanding its capabilities in addressing cardiovascular risk factors.
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