Swiss pharmaceutical company Novartis AG announced on Sunday that it will acquire U.S.-based biotech firm Avidity Biosciences for approximately US $12 billion, in a move to expand its footprint in rare disease and neuromuscular therapies.
Under the terms of the all-cash deal, Avidity shareholders will receive $72 per share, representing a premium of about 46 % over the company’s closing price on Friday. Avidity, based in San Diego, specialises in RNA-based therapeutics As part of the transaction, Avidity will spin off its early-stage precision cardiology programmes into a newly created public entity, to be called “SpinCo”.
That unit will remain independent while the core deal moves forward. Novartis
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For Novartis, gaining access to Avidity’s platform The immediate infusion of assets strengthens Novartis’s U.S. presence and rare-disease portfolio.
Analysts note that the success of the venture will depend heavily on the execution of Avidity’s clinical programmes and the integration of its technology platform. In sum, the transaction marks a sizable bet by Novartis on the future of RNA therapeutics within neuromuscular disease, and signals its intent to pivot into higher-growth, science-driven areas.
