Swiss drugmaker Novartis to buy Avidity Biosciences for $12 billion

Core Insights - Novartis has agreed to acquire Avidity Biosciences for approximately $12 billion in cash to enhance its portfolio for rare muscle disorders [1][3] - Avidity stockholders will receive $72 per share, reflecting a 46% premium over the company's closing price prior to the announcement [1][2] - The acquisition aligns with Novartis's strategy to address the patent cliff of its major drugs and expand into areas with limited treatment options [2][3] Company Strategy - The acquisition is part of Novartis's proactive approach to mitigate the impact of patent expirations on key drugs like Entresto, Xolair, and Cosentyx [2] - Avidity will spin off its early-stage precision cardiology programs into a new publicly traded company named Spinco [2][5] - This move strengthens Novartis's presence in the rare disease market, particularly in muscle disorders [3][4] Avidity Biosciences Overview - Avidity, based in San Diego, is a clinical-stage company focused on developing treatments for various muscle disorders [3] - The company has a market capitalization of nearly $6.7 billion and is advancing several first-in-class drug candidates [4] - Avidity's lead drug, Del-zota, is in early-to-mid-stage development for a rare form of Duchenne muscular dystrophy, with additional candidates targeting serious muscle diseases [4]