Novartis to acquire Avidity Biosciences for $12 bn

Under the deal terms, Avidity stockholders will receive $72 per share in cash, representing a 46% premium to the company’s closing price on Friday.

Swiss drugmaker Novartis on Sunday announced it will acquire U.S.-based Avidity Biosciences for about $12 billion in cash, in a move aimed at strengthening its treatments for rare muscle disorders.

Under the deal terms, Avidity stockholders will receive $72 per share in cash, representing a 46% premium to the company’s closing price on Friday. Bloomberg News had earlier reported the agreement, citing a person familiar with the matter.

The acquisition continues Novartis’ strategy of pursuing deals to mitigate the impact of an upcoming patent cliff for key products, including Entresto for heart failure, Xolair for asthma, and Cosentyx for autoimmune conditions.

Focus on Rare Diseases and U.S. Market Strengthening

Avidity said it will separate its early-stage precision cardiology programs into a new publicly traded company named Spinco. Kathleen Gallagher, currently Avidity’s Chief Program Officer, will lead Spinco following the spinoff.

The acquisition gives Novartis deeper access to the rare disease segment, an area with limited treatment options. Avidity, headquartered in San Diego, California, is a clinical-stage company developing therapies for muscle-related disorders, including potential treatments for Duchenne muscular dystrophy and other serious muscle diseases.

Its lead drug, Del-zota, is in early-to-mid-stage development as a treatment for a rare form of Duchenne muscular dystrophy. Avidity is also developing three experimental drug candidates aimed at rare neuromuscular conditions using RNA-based technology designed to deliver therapeutics directly to muscle tissue.

In Line with Novartis’ Recent Acquisitions

Analysts noted that this deal is consistent with Novartis’ earlier acquisitions, including Kate Therapeutics in November 2024 for gene therapy programs targeting neuromuscular diseases, and Anthos Therapeutics in February for cardiovascular treatments. The company also signed a $1.7 billion deal with Regulus Therapeutics in April for a kidney disorder therapy and partnered with Matchpoint Therapeutics in July in a collaboration worth up to $1 billion for inflammatory disease medicines.

The acquisition also comes as Novartis seeks a stronger foothold in the U.S. amid potential tariff threats from the Trump administration, which imposed 39% tariffs on Switzerland in August. Although pharmaceutical products were initially exempted, the move prompted several global drugmakers, including Johnson & Johnson, Roche, and Sanofi, to increase U.S. investments to navigate trade uncertainties.

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