NewsGlobalNovartis Expands Rare Disease Portfolio with $12 Billion Avidity Biosciences AcquisitionNovartis Expands Rare Disease Portfolio with $12 Billion Avidity Biosciences Acquisition
Novartis has agreed to acquire Avidity Biosciences for $12 billion, offering $72 per share, a 46% premium over Avidity's Friday closing price. The deal aims to expand Novartis' rare disease treatment portfolio, particularly in muscle disorders. Avidity brings a promising pipeline including Del-zota for Duchenne muscular dystrophy and three experimental drugs for rare neuromuscular disorders. As part of the transaction, Avidity will spin off its early-stage precision cardiology programs into a new public company. This acquisition follows Novartis' recent purchases of Anthos Therapeutics, Regulus Therapeutics, and Kate Therapeutics, reinforcing its focus on rare diseases and neuromuscular treatments.
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Swiss pharmaceutical giant Novartis has agreed to acquire US biotech firm Avidity Biosciences in a deal valued at approximately $12 billion, marking a significant expansion of its rare disease treatment portfolio.
Deal Highlights
| Detail | Value |
|---|---|
| Acquisition Price | $12.00 billion |
| Per Share Offer | $72.00 |
| Premium to Friday's Close | 46.00% |
| Avidity's Market Cap | $6.70 billion |
Strategic Rationale
Novartis' move to acquire Avidity Biosciences comes as the company seeks to bolster its pipeline of treatments for rare muscle disorders. This strategic acquisition aims to address upcoming patent expirations for several of Novartis' blockbuster drugs, including:
- Entresto
- Xolair
- Cosentyx
Avidity's Portfolio
Avidity Biosciences, a clinical-stage company, brings to Novartis a promising pipeline of treatments for muscle disorders:
- Lead Drug: Del-zota for Duchenne muscular dystrophy
- Pipeline: Three experimental drug candidates targeting rare neuromuscular disorders
- Technology: RNA therapeutics
Spin-Off Details
As part of the transaction, Avidity plans to spin off its early-stage precision cardiology programs:
- New Entity: Spinco (publicly traded company)
- Leadership: Kathleen Gallagher (current chief program officer of Avidity)
Novartis' Recent Acquisitions
This latest deal follows a series of strategic acquisitions by Novartis:
| Company | Deal Value | Focus Area |
|---|---|---|
| Anthos Therapeutics | $3.10 billion | Not specified |
| Regulus Therapeutics | $1.70 billion | Not specified |
| Kate Therapeutics | Not disclosed | Neuromuscular disease treatments |
The Avidity Biosciences acquisition represents Novartis' continued efforts to strengthen its position in the rare disease and neuromuscular disorder treatment space. By integrating Avidity's innovative RNA therapeutics technology and pipeline, Novartis aims to enhance its capabilities in addressing unmet medical needs in these areas.
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