Novartis to acquire Avidity Biosciences for about $12B

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].