This Biopharma Stock Is Soaring 58%. Novartis Is Acquiring It.

Novartis agreed to acquire Tourmaline Bio in an all-cash deal worth around $1.4 billion. (Stefan Wermuth/Bloomberg)

Novartis agreed to acquire clinical-stage biopharmaceutical maker Tourmaline Bio Inc. in an all-cash deal worth around $1.4 billion.

Tourmaline stockholders will receive $48 a share in the deal, which will see the company become an indirect wholly owned subsidiary of Novartis . The transaction is expected to close in the fourth quarter of 2025.

Tourmaline shares were soaring 58% to just under $48 in premarket trading Tuesday. The stock closed Monday at $30.18. Zurich-traded shares of Novartis were flat. U.S.-listed shares of Novartis declined slightly.

The acquisition gives Novartis a potential breakthrough therapy for residual inflammation among those with atherosclerotic cardiovascular disease, the company said. Tourmaline’s flagship drug for the disease, pacibekitug, is currently well advanced in Phase 2 trials.

“We are excited to bring pacibekitug into the Novartis portfolio and collaborate with the Tourmaline team to advance its development as we diversify our efforts in cardiovascular care,” said Novartis Chief Medical Officer Shreeram Aradhye.

Write to Nate Wolf at nate.wolf@barrons.com