Drug Discovery Weekly — 2026-03-29
Novartis has announced a $2 billion acquisition of California-based Excellergy to bolster its food allergy immunology pipeline, while Merck edges closer to a $6 billion all-cash deal to acquire Terns Pharma. On the discovery front, AI-designed drugs are entering pivotal clinical trials in 2026, marking a landmark test for the technology's real-world clinical validity.
Drug Discovery Weekly — 2026-03-29
FDA & Regulatory Spotlight
The Fierce Pharma regulatory tracker (updated Friday, March 27) continues to log new regulatory milestones across the biopharma sector. Specific approvals, CRLs, and new designations published within this window could not be independently verified from FDA primary sources this cycle due to a page error on the FDA's NME tracker. The items below reflect confirmed trade-press reporting from within the coverage window.
No new FDA approvals, Complete Response Letters, or Breakthrough Therapy designations with confirmed dates after 2026-03-27 were available in verified sources this cycle. Readers should check the Fierce Pharma Regulatory Tracker directly for the latest updates.
Clinical Trial Milestones
AI-Designed Drugs Enter Pivotal Trials — Phase IIa/Pivotal
- Sponsor: Multiple companies (200+ AI-designed programs in development industry-wide)
- Target/Mechanism: Various; AI-driven de novo molecule design
- Result: Landmark Phase IIa results have been published; 2026 is described as the first year of large-scale pivotal testing for AI-originated therapeutics
- What's Next: Pivotal readouts expected throughout 2026, which will serve as the first real-world validation — or refutation — of AI drug discovery at scale
Abivax IBD Maintenance Trial — Phase III
- Sponsor: Abivax
- Target/Mechanism: Undisclosed mechanism in inflammatory bowel disease (IBD)
- Result: Abivax CEO confirmed to CNBC the company is not rushing deal talks, expressing confidence that pivotal June 2026 data readouts will improve its negotiating position with potential pharma partners
- What's Next: Key maintenance trial data expected in June 2026; the company has been flagged by analysts as a prime acquisition target
Note: Only two clinical trial milestones with verified dates after 2026-03-27 were available in the research results. A third item is not included to avoid fabrication.
Pipeline & Discovery
- AI in Neuroprotection (BCC Research / Industry-wide): A new BCC Research Pulse Report highlights that the North American neuroprotective agents market is growing at approximately 4.5% CAGR through 2030, with AI-driven drug discovery approaches increasingly shaping investment and pipeline strategies in this space. The report maps the innovation landscape for companies deploying machine learning to identify neuroprotective candidates.
- AI Compliance Gap (QuantHealth / Observer): QuantHealth's Siwar El Assad argues in a new Observer piece that pharmaceutical AI has outgrown existing compliance frameworks. As companies increasingly rely on AI for drug discovery, biological interaction modeling, and clinical trial optimization, current regulatory structures are lagging behind — posing cybersecurity and validation risks that the industry has yet to fully address.
Deals & Business
- Novartis acquires Excellergy for up to $2 billion: Swiss pharma giant Novartis announced it will acquire California-based biotech Excellergy in a deal worth up to $2 billion. The acquisition is intended to strengthen Novartis's immunology presence, specifically expanding its food allergy treatment pipeline. This represents Novartis's second sizeable acquisition announced in recent weeks.
- Merck nearing $6 billion acquisition of Terns Pharma: According to a Financial Times report cited by Reuters, Merck is close to finalizing an approximately $6 billion all-cash deal to acquire Terns Pharma. The deal is expected to bolster Merck's oncology portfolio. Merck and Terns have not officially confirmed the transaction.
What to Watch Next Week
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Abivax June data countdown: With management publicly signaling confidence in upcoming Phase III IBD maintenance data, watch for any interim updates, conference abstracts, or partnership announcements as deal speculation intensifies.
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Merck / Terns Pharma deal confirmation: The Reuters/FT report suggests a deal is close. Monitor for an official announcement from either party as early as next week.
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BIO-Europe Spring 2026 aftermath: With more than 3,700 life sciences innovators convening this week, watch for licensing deal announcements, new financing rounds of $50M+, and partnership disclosures flowing from the event into next week's news cycle.
Reader Action Items
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For pharma/biotech professionals: As AI-designed drugs enter large-scale pivotal trials in 2026, now is the time to assess your organization's validation and compliance frameworks for AI-generated candidates — QuantHealth's recent commentary underscores that regulatory structures are not yet keeping pace with AI deployment in clinical settings.
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Investment angle to monitor: Watch Terns Pharma (TERN) closely. With Reuters/FT reporting a near-finalized $6 billion all-cash acquisition by Merck, there may be remaining spread for arbitrageurs — but also execution risk if the deal falls through.
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Long-term scientific development: The 2026 cohort of AI-designed drugs entering pivotal trials represents an inflection point for computational drug discovery. Track which AI platform companies (and their therapeutic partners) produce the first Phase III successes — this will define the next decade of drug discovery investment.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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