Novartis and Otsuka Pharmaceutical are advancing deals to expand pipelines in allergy and psychiatry, with Novartis targeting next-generation anti-IgE therapy and Otsuka betting on a rapid-acting PTSD treatment.
Novartis and Otsuka both announced acquisition agreements this week as the companies move to advance treatment options in psychiatry and allergy medicines, respectfully.
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Otsuka Pharmaceutical agreed to acquire Transcend Therapeutics in a deal worth $700 million upfront and up to $525 million in additional sales-based milestone payments.1
The agreement secures TSND-201 (methylone), a rapid-acting investigational treatment for post-traumatic stress disorder. The deal is expected to close in the second quarter of 2026.
More than 13 million Americans are estimated to be affected by PTSD each year, yet no new treatments have been approved for the condition in 25 years. TSND-201 works through a fundamentally different mechanism than existing options, acting on monoamine transporters for serotonin, norepinephrine, and dopamine to rapidly enhance neuroplasticity, the brain's ability to reorganize neural circuits involved in fear memory and emotional regulation.1
Critically, the drug does not act on the serotonin 5-HT2A receptor that mediates hallucinogenic effects, distinguishing it from psychedelic-adjacent compounds in the PTSD pipeline.
FDA granted TSND-201 Breakthrough Therapy designation in July 2025. In the Phase II Impact-1 trial, a randomized, placebo-controlled study enrolling 65 adults with severe PTSD across 16 sites in the U.S., UK, and Ireland.1
The drug met its primary endpoint in the trial, with statistically significant improvements in PTSD severity scores from day 10 onward through the end of the 64-day study period, with results being published in JAMA Psychiatry in February 2026.1 Phase III patient recruitment is currently underway in the U.S.
Makoto Inoue, president of Otsuka, says the company sees TSND-201 as a potential paradigm-shifting therapy and plans to advance it in close collaboration with regulators.
"We are very pleased to welcome Transcend Therapeutics into the Otsuka group. Although treatment options for PTSD remain limited, TSND‑201 is generating expectations as a potential paradigm‑shifting therapy in the field of psychiatry. By combining Otsuka's long‑standing expertise in the psychiatric and neurological fields with Transcend's innovative approach, we will advance the development of TSND-201 in close collaboration with regulatory authorities to bring this new treatment option to patients," said Inoue.
In a separate deal, Novartis agreed to acquire Excellergy, Inc., a private biotech developing Exl-111, a half-life extended, high-affinity anti-IgE antibody currently in Phase I clinical evaluation.2
The acquisition agreement is valued at upwards of $2 billion in upfront and milestone payments and is expected to close in the second half of 2026.2
IgE is a central driver of multiple allergic diseases including food allergy, chronic spontaneous urticaria, allergic asthma, and other conditions. While anti-IgE therapy is an established treatment approach, Exl-111 is designed to go further by dissociating receptor-bound IgE potentially driving faster and deeper downregulation of the FcεRIα receptor compared to conventional agents.2
Early pharmacokinetic data from the ongoing Phase I study support a sustained exposure profile consistent with its extended half-life design.
Fiona Marshall, president of biomedical research at Novartis, says Exl-111 builds on biology the company knows well through its existing allergy portfolio and could deliver faster symptom relief, stronger disease control, and more convenient dosing across a broad range of IgE-mediated conditions.
“Exl-111 is designed to go beyond conventional anti-IgE therapy, with the potential to deliver faster and deeper suppression of IgE signaling as well as improved symptom control. This proposed acquisition strengthens our allergy portfolio and reflects our strategy of advancing innovative bold science to bring meaningful additional benefits to patients,” said Marshall.
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