Novartis pays up to $2B for Excellergy to chase next-generation allergy drug
What's the deal? NovartisDealroom has a profile for this one. Try Dealroom → has agreed to acquire Palo Alto-based biotech Excellergy for up to $2B in upfront and milestone payments.
The deal, expected to close in the second half of 2026, gives the Swiss pharma giant access to Exl-111, a next-generation anti-IgE antibody currently in Phase 1 clinical trials.
Excellergy was seeded in 2021 by Red Tree Venture CapitalDealroom has a profile for this one. Try Dealroom → and is also backed by Samsara BioCapitalDealroom has a profile for this one. Try Dealroom → and Decheng CapitalDealroom has a profile for this one. Try Dealroom →.
Exl-111 targets the IgE axis — a central driver of allergic disease — with a differentiated mechanism. Unlike conventional anti-IgE therapies, it is designed to dissociate receptor-bound IgE rather than simply neutralising it in circulation, potentially delivering faster and deeper suppression of allergic signalling. The drug is being evaluated across food allergy, chronic urticaria, allergic asthma, and other IgE-mediated conditions.
Why now? Xolair (omalizumab), the blockbuster anti-IgE therapy co-developed by Novartis and Genentech, faces growing biosimilar competition. Novartis has been actively building its immunology pipeline to maintain its position in allergic disease, and Exl-111 — whose first subjects were dosed in February 2026 — gives it an early entry into what could be the next generation of a category it helped establish.
What could go wrong? Exl-111 is in Phase 1, the earliest stage of human clinical testing, with years of trials ahead before any commercial launch. Early pharmacokinetic data look promising, but the drug's differentiated mechanism remains to be confirmed clinically. At $2B in potential payments, Novartis is making a significant bet on biology that has not yet been fully validated in humans.
Milestone-heavy deal structures also mean Excellergy's investors may receive far less than the headline figure if the drug fails to hit clinical or regulatory targets.
The signal: The deal reflects how competitive the allergy space has become as biologics displace older treatments. Novartis is not alone — several large pharma companies are racing to establish next-generation positions in IgE-mediated disease.
The $2B price tag for a Phase 1 asset underscores how much strategic value acquirers now place on validated biological targets, even before clinical proof of concept is established.
Sources:
Excellergy
Novartis
GlobeNewswire
Fierce Biotech
pharmaphorum
Morningstar
Bloomberg
The Edge
Image credit:
Excellergy
J.V.
