Novartis to buy Tourmaline Bio for $1.4 billion

Novartis AG agreed to buy Tourmaline Bio in a deal valued at about $1.4 billion as the Swiss drugmaker continues to pursue bolt-on deals to boost its drug pipeline. The company will pay $48 per share in cash for the New York-based biotech, which is developing a promising treatment to reduce systemic inflammation, a major driver of cardiovascular disease.

That's a premium of about 60% to Tourmaline Bio's closing price of about $30 on Monday. Tourmaline Bio stock rose as much as 57% in premarket trading on Tuesday, with the shares trading just under the offer price at $47.25. Novartis fell slightly in early trading.

Novartis has been on the hunt for acquisitions that could boost its sales beyond 2025. The company is facing competition from cheap generics later this year for three key drugs, including its top-selling heart medicine Entresto. In April, the company also entered an agreement to buy US biotech Regulus Therapeutics in a deal that could be valued up to $1.7 billion.