Pharmaceutical Executive Daily: Novartis Acquires Excellergy Inc.

Welcome to Pharmaceutical Executive Daily, your quick briefing on the top news shaping the pharmaceutical and life sciences industry.

In today's Pharmaceutical Executive Daily, Novartis agrees to acquire Excellergy for up to $2 billion to advance a next-generation anti-IgE therapy while Otsuka moves to acquire Transcend Therapeutics in a deal valued at up to $1.225 billion, the FDA approves two first-of-their-kind therapies in Novo Nordisk's once-weekly basal insulin Awiqli and Rocket Pharmaceuticals' gene therapy Kresladi for a rare pediatric immune disease, and a new commentary argues that orphan drug manufacturers should be proactively evaluating risk contracting as a hedge against an emerging downward pricing environment.

In deal news, Novartis has agreed to acquire Excellergy, a private biotech developing a next-generation anti-IgE antibody called Exl-111 that is designed to target the IgE axis with faster and deeper pathway suppression than conventional approaches across food allergy, asthma, and other IgE-driven diseases, for up to $2 billion in upfront and milestone payments. Separately, Otsuka Pharmaceutical has agreed to acquire Transcend Therapeutics, a clinical-stage neuropsychiatric company developing rapid-acting treatments for PTSD and other psychiatric conditions, for $700 million upfront and up to $525 million in additional milestone payments. The two deals continue a busy stretch of pipeline-building activity across immunology and neuroscience.

The FDA has approvedAwiqli, Novo Nordisk's once-weekly basal insulin, as the first therapy of its kind for adults with type 2 diabetes, supported by the four-trial Onwards Phase III program demonstrating HbA1c reduction with a safety profile consistent with daily basal insulin. In a separate action, the agency granted accelerated approval to Rocket Pharmaceuticals' Kresladi, the first gene therapy for severe leukocyte adhesion deficiency type 1, a rare pediatric immune disease that leaves children vulnerable to life-threatening infections and for which stem cell transplant has historically been the only curative option.

Finally, a new commentary makes the case that orphan drug manufacturers should begin evaluating risk contracting now, even if pricing pressures on the segment remain limited in the near term. The piece identifies four emerging policy developments, including most-favored-nation pricing mechanisms and evolving Medicare negotiation dynamics, that could eventually create downward pressure on orphan products, and argues that risk contracting offers manufacturers a way to justify premium pricing, build payer relationships, and differentiate against an expanding competitive field.

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