Novartis to Buy Avidity Biosciences for About $12 Billion

Novartis said it has agreed to buy U.S.-based Avidity Biosciences in a deal valued at about $12 billion in cash, as per the news reports. According to the terms, Avidity shareholders will receive $72 per share, representing a 46% premium to the company’s closing price on Friday. 

The transaction adds to a series of buyouts Novartis has made this year as it works to expand its drug development portfolio.

Avidity’s Background

Avidity Biosciences, based in San Diego, California, develops RNA-based treatments for rare muscle and neuromuscular disorders. The company’s lead experimental drug, Del-zota, is being tested for a rare form of Duchenne muscular dystrophy. 

It is also studying 2 additional treatments for other serious muscle-related diseases. Avidity’s current market value is around $6.7 billion.

Pipeline and Technology

The company is working on three experimental drug candidates that use a delivery method aimed at directing RNA medicines to muscle tissue. These programs are in various stages of development and are expected to move closer to regulatory review by 2026, depending on clinical outcomes.

Spin-Off Announcement

As part of the deal, Avidity plans to separate its early-stage precision cardiology programs into a new firm called Spinco. The spin-off is expected to be publicly listed, and Kathleen Gallagher, Avidity’s Chief Program Officer, will lead the new company once it is formed.

Other Novartis Transactions

The deal follows several acquisitions made by Novartis this year. In February, it acquired Anthos Therapeutics for $3.1 billion, focusing on cardiovascular therapies. In April, it signed a $1.7 billion agreement with Regulus Therapeutics for a kidney disorder treatment. In July, it entered a $1 billion collaboration with Matchpoint Therapeutics to develop oral medicines for inflammatory diseases.

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Conclusion

The purchase of Avidity will bring additional research programs into Novartis’ pipeline. The transaction will proceed after regulatory and shareholder approvals are completed.

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