Novartis to acquire Avidity Biosciences for about $12 billion

Core Viewpoint - Novartis has agreed to acquire Avidity Biosciences for approximately $12 billion in cash to enhance its portfolio in rare muscle disorder treatments [1][2]. Group 1: Acquisition Details - Avidity stockholders will receive $72 per share, reflecting a 46% premium over the company's closing price prior to the announcement [1]. - Avidity will spin off its early-stage precision cardiology programs into a new publicly traded company named Spinco [2][5]. Group 2: Strategic Rationale - The acquisition allows Novartis to expand into areas with limited treatment options, strengthening its position in the rare disease market [3]. - Avidity is developing treatments for various muscle disorders, including a lead drug in early-to-mid-stage development for a rare form of Duchenne muscular dystrophy [4]. Group 3: Market Context - Novartis is proactively making deals to address the impending patent cliff for several of its blockbuster drugs [2]. - The deal positions Novartis to establish a stronger foothold in the U.S. market amid potential pharmaceutical tariff threats [5].