Swiss pharmaceutical giant Novartis has announced its agreement to acquire U.S. biotech firm Avidity Biosciences for approximately $12 billion in cash, enhancing its portfolio in rare muscle disorder treatments.
In a significant move to expand its portfolio, Novartis, the Swiss drugmaker, announced on Sunday that it has reached an agreement to acquire Avidity Biosciences, a U.S.-based biotech firm, for about $12 billion in cash. This acquisition is part of Novartis’ strategy to strengthen its offerings in the treatment of rare muscle disorders.
Under the terms of the deal, Avidity stockholders will receive $72 per share in cash, which represents a 46% premium over the company’s closing stock price on Friday. Bloomberg News reported the details of the transaction, citing an anonymous source familiar with the negotiations.
In addition to the acquisition, Novartis has also entered into a $5.7 billion licensing agreement with Monte Rosa Therapeutics. This agreement aims to develop small molecule degraders for immune-mediated diseases, further underscoring Novartis’ commitment to innovative research and long-term growth in high-potential therapeutic areas.
Headquartered in Basel, Switzerland, Novartis AG is a leading global pharmaceutical company that focuses on innovative medicines across various fields, including oncology, cardiology, immunology, and neuroscience. The company has reported robust financial results for 2024, with net sales increasing by 12% and core operating income rising by 22% on a constant currency basis. Additionally, Novartis achieved FDA approval for Rhapsido (remibrutinib), an oral treatment for chronic spontaneous urticaria.
The acquisition of Avidity Biosciences is expected to enhance Novartis’ neuroscience and rare disease portfolio by integrating Avidity’s late-stage programs and its proprietary Antibody Oligonucleotide Conjugates (AOCs) technology. Following the acquisition, Avidity will spin off its early-stage cardiology programs into a new publicly traded entity named SpinCo. The deal is anticipated to close in the first half of 2026, pending customary regulatory approvals.
Avidity Biosciences, based in San Diego, is recognized for its pioneering work in developing RNA-based therapies for genetic neuromuscular diseases. The company’s proprietary AOCs platform combines the targeting capabilities of monoclonal antibodies with the precision of RNA therapeutics, allowing for direct delivery of treatments to muscle tissues.
Avidity’s therapeutic programs focus on conditions such as Duchenne muscular dystrophy (DMD), myotonic dystrophy type 1 (DM1), and facioscapulohumeral muscular dystrophy (FSHD). This innovative approach positions Avidity as a leader in the emerging field of precision medicine, thanks to its unique delivery platform and promising clinical pipeline.
This acquisition follows Novartis’ earlier strategic moves, including a $3.1 billion acquisition of Anthos Therapeutics in February to enhance its cardiovascular offerings, and a $1.7 billion deal with Regulus Therapeutics in April for a kidney disorder therapy.
By integrating Avidity’s late-stage programs and proprietary AOCs technology, Novartis is poised to accelerate its presence in innovative RNA-based treatments, thereby reinforcing its commitment to targeted growth through strategic mergers and acquisitions, innovation, and global market expansion.
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