Novartis to Acquire Biotech Firm Excellergy in $2 Billion Deal

Swiss pharmaceutical giant Novartis has announced plans to acquire California-based biotechnology company Excellergy in a deal valued at up to $2 billion. The agreement covers both upfront payments and milestone-based compensation, signaling a major strategic investment by Novartis in the growing field of immunology and food allergy treatment.

The transaction is anticipated to close in the second half of 2026, pending satisfaction of standard closing conditions, including necessary regulatory approvals from relevant authorities. Once finalized, the acquisition is expected to significantly bolster Novartis' foothold in the immunology sector, particularly within the increasingly competitive food allergy therapeutics market — an area seeing rising global demand for effective, long-term treatment solutions.

This latest deal underscores Novartis' aggressive growth strategy through targeted acquisitions. Just last week, the company announced a separate agreement to license a breast cancer drug candidate from U.S.-based biotech firm Synnovation Therapeutics for up to $3 billion, further demonstrating its commitment to expanding its oncology and specialty medicine pipeline.

Industry analysts view these back-to-back acquisitions as a deliberate move by Novartis to diversify and strengthen its therapeutic portfolio ahead of anticipated patent cliffs on several of its blockbuster drugs. By investing in innovative biotech firms like Excellergy and Synnovation Therapeutics, Novartis is positioning itself to maintain long-term revenue growth and scientific leadership across multiple high-value medical categories.

The food allergy treatment space, in particular, has emerged as a high-priority area for pharmaceutical investment, with millions of patients worldwide lacking adequate medical options. Novartis' entry into this space through the Excellergy acquisition could accelerate the development and commercialization of next-generation therapies, potentially transforming how food allergies are managed on a global scale.