Novartis to Acquire Regulus Therapeutics in $1.7 Billion Deal

Novartis has struck a deal to acquire US-based Regulus Therapeutics in a transaction valued at up to $1.7 billion, a move set to deepen the Swiss pharmaceutical giant’s investment in treatments for kidney disease, according to Reuters.

Under the agreement, Novartis will pay $7 per share in cash upfront, totaling roughly $800 million. An additional $7 per share will be awarded to Regulus shareholders contingent on the successful regulatory approval of farabursen, the company’s lead drug candidate. The total potential consideration effectively doubles Regulus’ share value, representing a 108% premium over its most recent closing price. Following the announcement, Regulus shares surged, ending the day at $7.80.

As reported by Reuters, farabursen is being developed to treat autosomal dominant polycystic kidney disease (ADPKD), a genetic condition that leads to the formation of cysts in the kidneys and can cause organ failure. The drug is expected to begin late-stage clinical trials later this year.

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Novartis’ acquisition is also aimed at harnessing Regulus’ proprietary platform that targets microRNAs—small molecules that regulate gene expression. This technology could open the door to novel approaches in treating not just kidney disorders, but potentially other genetic diseases as well.

The acquisition aligns with Novartis’ recent strategy to broaden its kidney disease pipeline. The company gained FDA approvals for two other kidney-focused therapies—Fabhalta and Vanrafia—and completed a $3.5 billion purchase of Chinook Therapeutics in 2023 to acquire a drug candidate for a rare kidney condition.

This latest deal also comes amid a quieter-than-expected year for mergers and acquisitions in the life sciences sector, where shifting U.S. regulatory and policy landscapes have slowed major transactions that were anticipated earlier in the year.

Novartis reaffirmed its financial outlook on Tuesday, forecasting adjusted earnings growth in the low double digits for 2025, suggesting continued confidence in its expansion strategy and portfolio performance.

Source: Reuters