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

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