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]