ZURICH: Swiss drugmaker Novartis (NOVN.S) said on Sunday it has agreed to acquire U.S. biotech firm Avidity Biosciences (RNA.O) in a deal valued at approximately $12 billion, expanding its reach into the promising field of RNA therapeutics.
Under the terms of the agreement, Novartis will pay $72 per share in cash for Avidity, representing a 46% premium to the company’s closing stock price on Friday. The transaction is expected to be completed in the first half of 2026, pending regulatory and shareholder approvals.
The acquisition will give Novartis access to Avidity’s pipeline of antibody oligonucleotide conjugates (AOCs), a novel technology designed to deliver RNA-based treatments directly to muscle tissue. This platform has potential applications for treating rare musculoskeletal and cardiac conditions.
“The Avidity team has built robust programs with industry-leading delivery of RNA therapeutics to muscle tissue,” Novartis Chief Executive Vas Narasimhan said in a statement. “We look forward to developing these programs to meaningfully change the trajectory of diseases for patients.”
As a result of the deal, Novartis raised its forecast for sales compound annual growth rate between 2024 and 2029 to 6% from 5%.
The move underscores Novartis’s strategic push to bolster its research and development pipeline, particularly in cutting-edge biologic drugs. Earlier this year, the company pledged to invest $23 billion in U.S.-based infrastructure, including plans for a new R&D hub in San Diego, where Avidity is based.
Bloomberg News first reported that the two companies were nearing a deal.
Avidity’s shares closed at $49.15 on Friday, giving it a market value of about $7.2 billion. The stock has surged nearly 70% since the start of the year, reflecting investor optimism about its technology. Novartis shares closed at $130.36 on Friday.
The deal follows two other recent transactions by Novartis with Anthos Therapeutics and Regulus Therapeutics, as the pharmaceutical giant seeks to strengthen its portfolio in cardiovascular and kidney disease treatments.