Acquisition News - Avidity Biosciences Inc has agreed to be acquired by Novartis AG, with Avidity shareholders set to receive $72.00 per share in cash at closing, reflecting a premium of approximately 46% over Avidity's closing share price on October 24 [1] Stock Movements - Avidity Biosciences shares surged 42.1% to $69.85 in pre-market trading following the acquisition announcement [1] - Click Holdings Limited experienced a significant gain of 173%, reaching $16.83 in pre-market trading after releasing FY25 financial results [5] - Treasure Global Inc saw a surge of 52.4%, trading at $1.10 after announcing an inducement grant under Nasdaq Listing Rule 5635(c)(4) [5] - Banco BBVA Argentina SA rose by 31.3% to $13.27, while Grupo Financiero Galicia SA surged 29.3% to $45.79 in pre-market trading [5] - Strive Inc gained 22.8% to $1.35 after announcing a pivot to becoming a Bitcoin-focused asset manager [5] Declines in Stock Prices - Picard Medical, Inc. tumbled 65.3% to $4.61 in pre-market trading [5] - Genenta Science SPA declined 32.3% to $4.20 after announcing a $15.0 million registered direct offering of American Depositary Shares [5] - Wellgistics Health Inc fell 31.5% to $0.79 after a significant jump of 185% on Friday [5] - Tianci International Inc shares dipped 29% to $0.70 after a previous gain of 40% [5] - 374Water Inc fell 22.2% to $0.36 following a preliminary proxy filing for a discretionary reverse stock split [5]

Group 1 - Novartis has been actively pursuing acquisition deals over the past year to strengthen its pipeline in response to patent expirations of key drugs like heart failure therapy, Kymriah [1][2] - On October 26, Novartis announced a proposed cash acquisition of Avidity Biosciences for approximately $12 billion to enhance its treatment portfolio for rare muscle diseases [1] - Avidity's latest market capitalization is close to $6.7 billion, and Novartis has completed nearly $20 billion in potential acquisition deals over the past year [1] Group 2 - Recent acquisitions by Novartis include: - $1.1 billion for gene therapy company Kate Therapeutics in November last year [2] - $3.1 billion for Anthos Therapeutics to enhance its cardiovascular treatment line in February [2] - $1.7 billion for Regulus Therapeutics for a kidney disease therapy in April [2] - Up to $1 billion agreement with Matchpoint Therapeutics for oral drugs targeting inflammatory diseases in July [2] - $1.4 billion acquisition of Tourmaline Bio for a cardiovascular treatment drug in September [2] - These acquisitions are aimed at addressing the patent expiration crisis of key drugs, with Novartis's stock price increasing approximately 34% this year, leading to a market capitalization exceeding $275 billion [2]

Core Viewpoint - Novartis has agreed to acquire Avidity Biosciences for $72 per share in cash, representing a 46% premium, with a total transaction value of $12 billion. This acquisition is expected to stimulate further mergers and acquisitions in the pharmaceutical industry [1] Group 1 - The acquisition price of $72 per share indicates a significant premium of 46% over Avidity's current market value [1] - The total value of the transaction is estimated at $12 billion, highlighting the scale of the deal within the biotech sector [1] - Avidity is developing experimental drugs for rare diseases, including treatments for neuromuscular diseases, which aligns with Novartis's strategic focus on innovative therapies [1]

Core Viewpoint - Novartis has announced an agreement to acquire Avidity Biosciences for $12 billion, focusing on innovative RNA therapies for neuromuscular diseases [3][30]. Group 1: Acquisition Details - The acquisition involves Novartis purchasing all outstanding shares of Avidity at $72.00 per share, representing a 46% premium over Avidity's closing price on October 24, 2025 [30]. - The deal is expected to close in the first half of 2026, contingent upon the separation of Avidity's early precision cardiology projects into a new entity, SpinCo [35]. - Avidity's late-stage neuroscience projects will be integrated into Novartis, enhancing its pipeline in treating genetic neuromuscular diseases [8][22]. Group 2: Strategic Importance - The acquisition is projected to increase Novartis's expected compound annual growth rate (CAGR) from 5% to 6% for the years 2024-2029, presenting a significant opportunity for shareholder returns [13][30]. - Avidity's innovative AOC RNA therapy platform aims to address severe genetic neuromuscular diseases, potentially leading to first-in-class treatment candidates [8][22]. Group 3: Market Potential - External forecasts suggest multi-billion-dollar peak sales potential for Avidity's therapies targeting diseases such as DM1 and FSHD, with no loss of exclusivity expected before 2042 [26][30]. - Avidity's therapies are designed to correct underlying genetic causes, offering meaningful benefits to patients suffering from conditions like DM1, FSHD, and DMD [22][47]. Group 4: Clinical Development - Avidity's lead candidate, Del-desiran, is designed to degrade DMPK mRNA to address the root cause of DM1, with promising data from Phase 1/2 studies indicating potential for significant clinical impact [36][40]. - Del-brax, targeting FSHD, has shown improvements in functional mobility and muscle strength in clinical trials, with ongoing studies expected to yield further data [48][50].

Core Viewpoint - Swiss pharmaceutical giant Novartis has agreed to acquire Avidity Biosciences, a biotechnology company focused on rare diseases, for $12 billion, marking its largest acquisition in over a decade [1] Group 1: Acquisition Details - Novartis will purchase Avidity at a price of $72 per share, representing a 46% premium over Avidity's closing price of approximately $49 last Friday [1] - The enterprise valuation of Avidity, which has net cash, is estimated at $11 billion [1] Group 2: Strategic Importance - CEO Vas Narasimhan indicated that two of Avidity's late-stage drug candidates have the potential to achieve peak annual sales in the billions, while a third could generate $500 million to $1 billion in peak year revenue [4] - These late-stage assets are expected to be market-ready by 2030, helping Novartis address the impending patent cliff of its key drugs [4] Group 3: Financial Impact - The acquisition is projected to increase Novartis's compound annual growth rate (CAGR) from 5% to 6% for the period from 2024 to 2029, although it will dilute profitability by 1 to 2 percentage points in the coming years [4] - The transaction will not affect Novartis's earnings guidance for the current year [4] Group 4: Broader Acquisition Strategy - Novartis is actively pursuing acquisitions to mitigate the impact of patent expirations on its major drugs, having recently acquired Tourmaline Bio for $1.4 billion and Anthos Therapeutics for up to $3.1 billion [6] - The company has also entered into a collaboration agreement with Chinese firm Argo Biopharma worth up to $5.2 billion for rights to a cardiovascular drug [6]

Core Insights - Novartis agrees to acquire Avidity Biosciences for approximately $12 billion, at a price of $72 per share [1] - The acquisition aims to expand Novartis' rare disease treatment portfolio, particularly therapies for muscle diseases [1] - Avidity Biosciences will spin off its early-stage heart disease treatment project into a new company named Spinco, which is expected to go public [1] - Avidity's flagship drug, Del-zota, is in early to mid-stage clinical trials for Duchenne muscular dystrophy, along with other candidates for severe muscle diseases [1] - This acquisition aligns with Novartis' recent strategy to address the patent cliff of several blockbuster drugs through a series of transactions [1]

Core Viewpoint - Novartis has agreed to acquire Avidity Biosciences for a valuation of $12 billion, marking its largest acquisition in nearly a decade, with a cash offer of $72 per share, representing a 46% premium over Avidity's last closing price [1] Group 1: Acquisition Details - The acquisition values Avidity at $12 billion in equity, but post-transaction, Avidity is expected to have approximately $1 billion in cash, leading to an enterprise value of about $11 billion [1] - Avidity's market capitalization reached around $6.8 billion at the time of the acquisition announcement [1] - The deal is expected to be completed in the first half of 2026, contingent upon the completion of a spin-off [3] Group 2: Strategic Implications - Avidity is developing experimental drugs for rare diseases, including a treatment for type 1 myotonic dystrophy, which aligns with Novartis's strategy to enhance its product portfolio [1][3] - Novartis is facing competition from generic drugs impacting three of its key products, including its best-selling heart drug, Entresto, highlighting the need for strategic acquisitions [3] - The acquisition is part of a broader trend in the biotechnology sector, where large pharmaceutical companies are acquiring smaller firms with innovative technologies to boost revenue [1] Group 3: Spin-off Plans - Prior to the transaction's completion, Avidity plans to spin off its early-stage precision cardiology project into a new company named SpinCo [2] - Avidity shareholders will receive shares in SpinCo or cash if assets are sold before the Novartis deal closes [2] Group 4: Regulatory Recognition - Avidity has received "Breakthrough Therapy" designation from the FDA for one of its drugs aimed at treating certain patients with Duchenne muscular dystrophy [4]

Core Viewpoint - Halper Sadeh LLC is investigating the fairness of the proposed sale of Avidity Biosciences, Inc. to Novartis for $72.00 per share in cash, focusing on the rights and interests of Avidity shareholders [1][2]. Group 1: Investigation Details - The investigation examines whether Avidity and its board violated federal securities laws and fiduciary duties by not securing the best possible consideration for shareholders [2]. - Concerns include whether Novartis is underpaying for Avidity and if all material information necessary for shareholders to assess the merger was disclosed [2]. Group 2: Potential Actions - Halper Sadeh LLC may seek increased consideration for Avidity shareholders, additional disclosures, and other forms of relief related to the transaction [3].

Core Viewpoint - The Swiss pharmaceutical company is acquiring a new asset to enhance its existing pipeline of treatments for neuromuscle disorders [1] Company Summary - The acquisition is aimed at complementing the company's current offerings in the neuromuscle disorder treatment space [1]

Core Viewpoint - Novartis has agreed to acquire Avidity Biosciences for approximately $12 billion in cash to enhance its portfolio in rare muscle disorder treatments, offering Avidity shareholders $72 per share, a 46% premium over the previous closing price [1][4]. Group 1: Acquisition Details - The acquisition price of $12 billion will provide Avidity stockholders with $72 per share, reflecting a significant premium of 46% [1]. - Avidity will spin off its early-stage precision cardiology programs into a new publicly traded company named Spinco as part of the deal [4]. Group 2: Strategic Rationale - This acquisition allows Novartis to expand into areas with limited treatment options, thereby strengthening its position in the rare disease market [4]. - Novartis is actively pursuing deals to mitigate the impact of an impending patent cliff for several of its blockbuster drugs, including Entresto, Xolair, and Cosentyx [2]. Group 3: Avidity's Profile - Avidity, based in San Diego, is a clinical-stage company focused on developing treatments for various muscle disorders and has several first-in-class drug candidates in its pipeline [5][7]. - The lead drug, Del-zota, is in early-to-mid-stage development targeting a rare form of Duchenne muscular dystrophy, alongside two other drugs for serious muscle diseases [6].