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Novartis strengthens allergy leadership via USD 2b Excellergy acquisition

Novartis has entered into an agreement to acquire Excellergy, Inc., a private US-based biotech developing next-generation anti-IgE therapies, for up to USD 2 billion in upfront and milestone payments. The Novartis Excellergy acquisition reinforces the company's immunology strategy by adding a differentiated Phase I asset, Exl-111, designed to address limitations of existing anti-IgE approaches across multiple IgE-driven diseases.

Deal terms

The total consideration of up to USD 2 billion encompasses both upfront cash and contingent milestone payments, though the split between guaranteed and performance-linked components was not disclosed. The transaction is expected to close in H2 2026, subject to customary closing conditions including regulatory approvals. As a full company acquisition, the deal confers worldwide rights to Exl-111 and Excellergy's broader platform, with no geographic carve-outs disclosed.

Exl-111 and the trifunctional ECRI platform

The deal is driven by Exl-111, a half-life extended, high-affinity anti-IgE monoclonal antibody classified as a trifunctional allergic Effector Cell Response Inhibitor (ECRI). Conventional anti-IgE therapy, exemplified by omalizumab (Xolair), primarily neutralizes free circulating IgE. Exl-111 operates through a distinct trifunctional mechanism: it dissociates IgE already bound to the high-affinity receptor FcεRIα on mast cells and basophils, drives downregulation of FcεRIα itself, and sustains suppression of IgE re-binding — all without triggering effector-cell degranulation.

Preclinical data presented at the 2026 AAAAI Annual Meeting demonstrated that Exl-111 dissociated receptor-bound IgE from human-donor whole-blood basophils in under 24 hours at tested concentrations. In primate studies, the antibody achieved rapid and near-complete removal of receptor-bound IgE from basophils, exceeding 99% clearance, while driving substantial FcεRIα downregulation. Early human pharmacokinetic data from the ongoing Phase I DISARM trial, in which first subjects were dosed in February 2026, showed sustained exposure consistent with the molecule's half-life extended design.

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If this profile is confirmed clinically, Exl-111 could support faster symptom relief, stronger disease control, and more convenient dosing intervals relative to existing Exl-111 anti-IgE therapies. Target indications span food allergy, chronic spontaneous urticaria, chronic inducible urticaria, allergic asthma, and other IgE-mediated conditions, including potentially pediatric populations.

Strategic context

The acquisition fits within the broader Novartis immunology strategy, which spans rheumatology, dermatology, and allergy. Novartis already co-markets Xolair, the first approved anti-IgE antibody, giving the company deep familiarity with IgE biology and established commercial infrastructure in allergic disease. Exl-111 is positioned not as a replacement but as a complement to the existing Novartis allergy portfolio, extending validated biology with a mechanism designed to reach patients who respond insufficiently to current therapies.

Fiona Marshall, President of Biomedical Research at Novartis, noted that Exl-111 is "designed to go beyond conventional anti-IgE therapy" and that the acquisition "strengthens our allergy portfolio and reflects our strategy of advancing innovative bold science." The ECRI platform underlying Exl-111 is described as capable of generating a portfolio of additional candidates for IgE-driven diseases treatment, though no other named assets have been publicly disclosed.


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