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(Sharecast News) - Swiss pharma group Novartis has announced the acquisition of allergy drug specialist Excellergy for up to $2bn as it beefs up its presence in the immonology and food allergy markets.
The private biotech company is most known for developing therapies for Immunoglobulin E (IgE)-driven diseases, which can trigger inflammatory responses and allergic reactions.
Its lead asset, Exl-111, which is still in development is "designed to dissociate receptor-bound IgE with the potential to drive faster and deeper Fc epsilon RI alpha downregulation", Novartis said.
If clinical trials are successful, Exl-111 could support earlier symptom relief, stronger disease control and more convenient dosing, with the potential for use against other IgE-mediated diseases.
The price tag of $2bn includes both upfront and milestone payments.
"Excellergy adds a differentiated next-generation anti-IgE program that builds on biology Novartis knows well, supported by preclinical evidence and early clinical pharmacokinetic data," said Fiona Marshall, Novartis's president of biomedical research.
"This proposed acquisition strengthens our allergy portfolio and reflects our strategy of advancing innovative bold science to bring meaningful additional benefits to patients."
Novartis shares were down 0.2% at CHF119.30 by 1208 GMT.
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