Xin Lang Cai Jing·2025-10-27 09:30Core Viewpoint - Novartis announced its acquisition of Avidity Biosciences for approximately $12 billion, marking a significant move in the biotech sector aimed at enhancing its pipeline in neuromuscular diseases [3][4]. Group 1: Acquisition Details - The acquisition involves Avidity shareholders receiving $72 per share, representing a 46% premium over the last closing price of $49.15 [3]. - Avidity will spin off its early precision cardiology projects into a new company named Spinco, which is expected to become publicly listed [3][4]. - The deal is anticipated to close in the first half of 2026, with significant commercial opportunities projected by 2030 [5]. Group 2: Strategic Rationale - Novartis is proactively pursuing multiple transactions to address patent expirations of key drugs, including Entresto, Xolair, and Cosentyx [4]. - The acquisition will provide Novartis with advanced RNA development projects targeting diseases such as Duchenne muscular dystrophy (DMD) and facioscapulohumeral muscular dystrophy (FSHD) [4][6]. - The expected compound annual growth rate (CAGR) for Novartis's sales from 2024 to 2029 is projected to increase from +5% to +6% due to this acquisition [5]. Group 3: Company Profiles - Avidity Biosciences, based in San Diego, is a clinical-stage company focused on developing treatments for various muscle diseases [6]. - Avidity's lead drug, Del-zota, is in early to mid-stage development for treating DMD, alongside other candidates for severe muscle diseases [6].