H.C. Wainwright downgrades Tourmaline Bio to 'neutral' after $1.4 billion buyout deal

Tourmaline Bio

10/09/2025 11:54

** Brokerage H.C. Wainwright downgrades biopharma firm Tourmaline Bio TRML.O to "neutral" from "buy" rating

** Swiss drugmaker Novartis NOVN.S said on Tuesday it will acquire TRML for $1.4 billion or $48 per share

** Deal is expected to close in Q4

** "We do not expect a competitive bid to emerge at this time" - H.C. Wainwright

** Brokerage lowers PT to $48 from $50

** Under the deal, Novartis will acquire TRML's experimental drug, pacibekitug, currently in a late-stage study for atherosclerotic cardiovascular disease

** In mid-stage study, all pacibekitug arms achieved "rapid, robust, and durable reductions in inflammation and cardiovascular events," brokerage says

** While pacibekitug's true value could be much higher, Jefferies believes a fundamental valuation of around $1 billion is fair for now, given the current clinical data and the need for a large late-stage study

** Up to last close, TRML up 134.9% YTD

(Reporting by Siddhi Mahatole)

((siddhi.mahatole@thomsonreuters.com))