Novartis acquires Avidity Biosciences for $12 billion

Swiss pharmaceutical company Novartis said on Sunday it has agreed to acquire US biotechnology company Avidity Biosciences for about $12 billion in cash, as the company looks to boost its portfolio of treatments for rare muscle disorders.

Avidity shareholders will receive $72 in cash per share, representing a 46% premium to the company’s Friday close.

Novartis has been proactively closing deals this year to address the looming patent cliff for some of its blockbuster drugs, including Entresto for heart failure, Exolair for asthma, and Cosentyx for autoimmune diseases.

Under the terms of the deal, Avidity will spin off its early-stage precision cardiology programs into a new company called Spinco, which is expected to be a publicly traded company, Avidity said in a separate statement.

With this acquisition, Novartis expands into areas with limited treatment options, while strengthening its presence in the field of rare diseases.

San Diego-based Avidity, a clinical-stage company, is developing treatments for various muscle disorders and developing several first-in-class drug candidates.

Its lead drug, Del-zota, is in early to mid-stages as a potential treatment for a rare form of Duchenne muscular dystrophy, while the company is also working on two other drugs for serious muscle diseases.

This deal also helps Novartis establish a stronger foothold in the US market amid the potential threat of massive drug tariffs from President Trump.