SNAPSHOT

Novartis bets $2B on next-gen allergy drug to succeed blockbuster Xolair

Novartis is acquiring biotech Excellergy in a deal worth up to $2 billion to gain access to a late-stage anti-IgE therapy (Exl-111) that could outperform its own blockbuster allergy drug, Xolair.

Why it matters: Xolair generated $1.7B in 2025 sales but faces looming biosimilar competition in the U.S. Novartis is investing early to secure a stronger, next-generation successor and maintain dominance in allergy treatments.

Backstory: Excellergy only emerged from stealth about five months ago with $70 million in funding, though the company was founded in 2021 with seed backing from Red Tree. It has focused on a new class of therapies called effector cell response inhibitors, or ECRIs, based on discoveries from Stanford University and the University of Bern.

Zoom in: Exl-111 is designed as an “effector cell response inhibitor” (ECRI), a new drug class that goes beyond conventional anti-IgE drugs like Xolair. It removes IgE directly from immune cell receptors without activating them and so avoiding side effects. Preclinical data showed >99% removal of cell-bound IgE in basophils. Early trials began recently, with phase 3 development underway. The goal that Exl-111 is going after is faster symptom relief, deeper suppression, and more convenient dosing vs. Xolair.

Big picture: The deal reflects a broader pharma strategy of replacing aging biologics with more precise, next-gen therapies before generics erode revenue. If successful, ECRIs could redefine treatment across multiple allergic diseases, including allergic asthma, food allergies, or chronic urticaria.

What’s next: Novartis will integrate Excellergy’s program into its pipeline and push clinical development forward as biosimilar Xolair competitors are expected in the U.S. by late 2026.

SNIPPETS

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