By Mucahithan Avcioglu
ISTANBUL (AA) - Switzerland-based pharmaceutical company Novartis announced that it reached an agreement to acquire US biotechnology company Avidity Biosciences for approximately $12 billion.
"Transaction strengthens neuroscience franchise for Novartis with three late-stage programs that address genetic neuromuscular diseases," Novartis said in a statement on Sunday.
The offer represents a price of approximately 46% above the closing share price on Oct. 25 of Avidity Biosciences, which is traded at the New York Stock Exchange.
Under the agreement, Avidity will transfer its early-stage precision cardiology programs to a new company called Spinco.
The deal is expected to close in the first half of 2026, pending the necessary approvals.
The acquisition is expected to help Novartis strengthen its portfolio of treatments for rare muscle disorders.
"Avidity’s pioneering AOC platform for RNA therapeutics and its late-stage assets bolster our commitment to delivering innovative, targeted and potentially first-in-class medicines to treat devastating, progressive neuromuscular diseases,” said Vas Narasimhan, CEO of Novartis.
“The Avidity team has built robust programs with industry-leading delivery of RNA therapeutics to muscle tissue. We look forward to developing these programs to meaningfully change the trajectory of diseases for patients," Narasimhan added.