Novartis to acquire Avidity Biosciences for about $12B
Novartis, a Swiss pharmaceutical company, announced on Sunday that it has entered into an agreement to purchase Avidity Biosciences, a US biotech firm, for approximately $12 billion in cash. This acquisition is part of Novartis’ strategy to enhance its range of treatments for rare muscle disorders.
Shareholders of Avidity will receive $72 per share in cash, which represents a 46% premium over the company’s closing price on Friday.
Novartis has been actively pursuing deals this year to address the upcoming expiration of patents on some of its blockbuster drugs, such as Entresto for heart failure, Xolair for asthma, and Cosentyx for autoimmune diseases.
As part of the acquisition, Avidity will spin off its early-stage precision cardiology programs into a new company called Spinco, which is expected to become a publicly traded entity, according to a statement from Avidity.
Through this acquisition, Novartis is entering areas with few treatment options and strengthening its presence in the rare disease sector.
Avidity, based in San Diego, is a clinical-stage company focused on developing treatments for various muscle disorders and advancing innovative drug candidates.
One of Avidity’s key drugs, Del-zota, is currently in early-to-mid-stage development as a potential treatment
