Core Insights - Novartis has agreed to acquire Avidity Biosciences for $12 billion, marking its largest acquisition in over a decade [1] - This acquisition is part of a broader trend where large pharmaceutical companies are increasingly purchasing biotech firms, with this being the 21st such deal in 2025 [2][4] - The deal is strategically important for Novartis as it seeks to maintain growth momentum beyond 2029, particularly after a significant drug's patent expiration [2][3] Industry Trends - The recent surge in mergers and acquisitions (M&A) activity in the biotech sector indicates a growing confidence among large pharma companies, driven by a more stable regulatory environment [5][6] - The focus on rare disease assets in this deal suggests that these drugs face less scrutiny regarding pricing and regulation compared to standard drugs, potentially mitigating risks associated with pricing pressures [6][7] - The increase in M&A activity is also linked to a reprieve from certain tariff threats, which has provided companies with the confidence to pursue acquisitions [5][6]