Under the agreement, Avidity shareholders will get $72 per share in cash, reflecting a 46% premium over the company’s Friday closing price.
Swiss drugmaker Novartis announced on Sunday that it will acquire U.S.-based Avidity Biosciences for approximately $12 billion in cash, aiming to bolster its portfolio of treatments for rare muscle disorders.
As part of the deal, Avidity shareholders will receive $72 per share in cash, a 46% premium over the company’s closing price on Friday. The agreement was earlier reported by Bloomberg News, citing a source familiar with the matter.
The acquisition aligns with Novartis’ ongoing strategy of pursuing deals to offset the impact of an upcoming patent cliff affecting key products, including Entresto for heart failure, Xolair for asthma, and Cosentyx for autoimmune diseases.
Emphasis on Rare Diseases and Expansion in U.S. Market
Avidity announced plans to spin off its early-stage precision cardiology programs into a new publicly traded company called Spinco, which will be led by Kathleen Gallagher, Avidity’s current Chief Program Officer.
The acquisition provides Novartis with greater access to the rare disease market, where treatment options are limited. Based in San Diego, California, Avidity is a clinical-stage company focused on developing therapies for muscle-related disorders, including potential treatments for Duchenne muscular dystrophy and other serious muscle conditions.
Its leading drug candidate, Del-zota, is in early-to-mid-stage development for a rare form of Duchenne muscular dystrophy. Additionally, Avidity is advancing three experimental drug candidates targeting rare neuromuscular diseases, utilizing RNA-based technology designed to deliver therapies directly to muscle tissue.
Aligned with Novartis’ Recent Buyouts
Analysts observed that this acquisition aligns with Novartis’ recent deal-making activity, including the purchase of Kate Therapeutics in November 2024 for gene therapy programs targeting neuromuscular disorders, and Anthos Therapeutics in February for cardiovascular treatments. In addition, Novartis inked a $1.7 billion agreement with Regulus Therapeutics in April for a kidney disorder therapy and entered a collaboration with Matchpoint Therapeutics in July, valued at up to $1 billion, to develop treatments for inflammatory diseases.
The move also reflects Novartis’ strategy to strengthen its presence in the U.S., amid potential tariff risks following the Trump administration’s imposition of 39% tariffs on Switzerland in August. While pharmaceutical products were initially exempt, the policy prompted major global drugmakers, including Johnson & Johnson, Roche, and Sanofi, to boost U.S. investments to mitigate trade-related uncertainties.
