BY Fraser Tennant
In a deal that strengthens its late-stage neuroscience pipeline, Swiss multinational pharmaceutical corporation Novartis is to acquire US biotech firm Avidity Biosciences for approximately $12bn in cash.
Under the terms of the definitive merger agreement, which has been unanimously approved by the boards of directors of both companies, Novartis will acquire all outstanding shares of Avidity and holders of Avidity common stock will receive $72 per share in cash at closing.
The acquisition is expected to create an industry-leading pipeline, building on Novartis expertise in spinal muscular atrophy and commercialisation capabilities in genetic neuromuscular diseases. As part of the deal, Avidity will separate its early-stage precision cardiology programmes into a new company called Spinco, which is expected to be a publicly traded company,
“Avidity’s pioneering ribonucleic acid (RNA) therapeutics bolster our commitment to delivering innovative, targeted and potentially first-in-class medicines to treat devastating, progressive neuromuscular diseases,” said Vas Narasimhan, chief executive of Novartis. “The Avidity team has built robust programmes with industry-leading delivery of RNA therapeutics to muscle tissue.”
Avidity’s programmes include a commitment to deliver a new class of pioneering RNA therapeutics called antibody oligonucleotide conjugates (AOC) for serious, genetic neuromuscular diseases. Its AOC platform combines the tissue specificity of monoclonal antibodies with the precision of oligonucleotides, enabling targeted delivery to previously hard-to-reach muscle cells.
“Avidity has expanded the possibilities of what RNA therapeutics can deliver to patients by advancing innovative science and creating an organisation with a strong commitment to providing access to our potential medicines,” said Sarah Boyce, president and chief executive of Avidity. "I am proud of what we have created in close collaboration with the patient and clinical communities we serve, and I want to thank them and the Avidity team for their commitment and dedication."
The acquisition by Novartis of Avidity is subject to the completion of the separation of Spinco and other customary closing conditions, including the receipt of regulatory approvals and the approval of Avidity’s stockholders.
The companies expect the transaction to close in the first half of 2026. Until closing, Novartis and Avidity will continue to operate as separate and independent companies.
Ms Boyce concluded: “We are confident that this transaction with Novartis maximises value for our investors and will support the global expansion of our neuroscience pipeline.”
News: Novartis to acquire Avidity Biosciences for about $12 billion