Swiss drugmaker Novartis said on Friday it will buy California-based biotech company Excellergy in a deal worth up to $2 billion, the second sizeable acquisition it has announced in as many weeks.
Under the agreement, Novartis said it would pay up to $2 billion in upfront and milestone payments. The transaction is expected to close in the second half of 2026, subject to customary conditions, including regulatory approvals.
The transaction will strengthen Novartis' presence in the market of immunology in food allergy, the company said. Excellergy's food allergy drug candidate, Exl-111, could support earlier allergy symptom relief, for example.
Novartis had also last week announced its acquisition of a breast cancer drug candidate for up to $3 billion from U.S. biotech firm Synnovation Therapeutics.
In April last year, Novartis said it plans to invest $23 billion to build and expand its facilities in the United States through the following half decade.
So far the company has begun construction on R&D and manufacturing sites across four states, including California, and expanded its radioligand therapy facilities in Indiana and New Jersey.
(Reporting by Marleen Kaesebier, Bhanvi Satija and Maria Rugamer; Editing by Dave Graham)
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