Novartis Ramps Up M&A Activity with Focus on Cardiovascular Pipeline

Novartis, the Swiss pharmaceutical giant, has been on a spending spree in 2025, solidifying its position as a major player in the cardiovascular disease market. The company's business development team has been particularly active, closing multiple deals worth a combined $17.23 billion in mergers, acquisitions, and licensing agreements this year alone.

Tourmaline Bio Acquisition Bolsters ASCVD Portfolio

In a significant move, Novartis announced the acquisition of Tourmaline Bio for $1.4 billion. This deal gives Novartis access to pacibekitug, a promising monoclonal antibody targeting IL-6 for atherosclerotic cardiovascular disease (ASCVD). The transaction, which came at a 37% premium according to BMO Capital Markets, reflects the therapy's potential best-in-class profile. Pacibekitug is set to compete with Novo Nordisk's ziltivekimab, currently in Phase III trials.

Strategic Licensing Deals Expand Pipeline

Earlier this month, Novartis revealed two major licensing agreements with Argo Biopharmaceutical and Arrowhead Pharma, totaling $7.56 billion in potential deal value. These agreements, along with the Tourmaline Bio acquisition, underscore Novartis' commitment to strengthening its cardiovascular portfolio.

The company's focus on cardiovascular therapies comes as its blockbuster heart failure drug Entresto faces patent expiration this year. Novartis is also bracing for generic competition to other key products, including Xolair, Jakafi, Cosentyx, and Tafinlar, in the coming years.

Long-term Strategy and Future Outlook

Novartis CFO Harry Kirsch emphasized the company's strategy of pursuing "value-creating bolt-on deals" during a recent earnings call. The business development team, led by Chief Strategy Growth Officer Ronny Gal, has been instrumental in executing this strategy, signing 30 deals over the past two years.

CEO Vas Narasimhan highlighted the company's unique expertise in cardiac arrhythmias, an area where Novartis aims to have multiple assets in clinical trials by the end of 2025. The potential market size for these therapies is substantial, with Narasimhan noting the compelling opportunity to offer pharmaceutical alternatives to device-based cardioversion.

As Novartis continues to reshape its portfolio through strategic acquisitions and licensing deals, the pharmaceutical industry will be watching closely to see how these investments translate into innovative therapies and market success in the cardiovascular space.