Swiss drugmaker Novartis announced on Sunday that it has agreed to acquire U.S. biotech firm Avidity Biosciences for approximately $12 billion in cash, aiming to expand its portfolio of treatments for rare muscle disorders. Under the terms of the deal, Avidity stockholders will receive $72 per share, a 46% premium over Friday’s closing price, Bloomberg News reported earlier, citing a source familiar with the matter.
The acquisition positions Novartis to bolster its rare disease offerings while addressing the impending patent cliff for some of its major drugs, including Entresto for heart failure, Xolair for asthma, and Cosentyx for autoimmune diseases. As part of the transaction, Avidity will spin off its early-stage precision cardiology programs into a new publicly traded company called Spinco, with Kathleen Gallagher, Avidity’s chief program officer, set to lead the spin-off.
San Diego-based Avidity, a clinical-stage company, is developing treatments for several serious muscle disorders, including its lead candidate, Del-zota, a potential therapy for a rare form of Duchenne muscular dystrophy. The company’s three experimental RNA-based drug candidates are designed to deliver therapeutics directly to muscle tissue, with regulatory submissions expected by 2026.
The acquisition also strengthens Novartis’ foothold in the U.S. market amid potential pharmaceutical tariffs proposed by the Trump administration. While pharma companies were initially exempted from the 39% tariffs imposed on Switzerland in August, industry leaders—including Johnson & Johnson, Roche, and Sanofi—have pledged billions in U.S. investments to mitigate trade risks.
Analysts note that the Avidity deal is in line with Novartis’ strategy of acquiring biotech firms focused on neuromuscular and rare diseases. It follows the company’s recent purchases of Kate Therapeutics, Anthos Therapeutics, and Regulus Therapeutics, as well as a collaboration with Matchpoint Therapeutics to develop oral treatments for inflammatory conditions.
With the Avidity acquisition, Novartis continues to expand its presence in high-value, unmet medical needs, strengthening its pipeline and positioning the company for growth in the rare disease market.
