Geneva (AFP) – Swiss pharmaceutical giant Novartis announced Sunday it had agreed to buy Avidity Biosciences, valuing the US biopharmaceutical company at $12 billion.
“The proposed acquisition is expected to create an industry-leading pipeline, building on the Novartis expertise in spinal muscular atrophy and commercialisation capabilities in genetic neuromuscular diseases,” Novartis said in a statement. The move will bring Avidity’s late-stage neuroscience programmes into the Novartis fold and give it access to a “differentiated RNA-targeting delivery platform,” it said. The deal is expected to be closed in the first half of 2026, after San Diego-based Avidity’s early-stage precision cardiology programmes have been separated off into a new company. Avidity common stock holders will receive $72 per share in cash when the deal closes — a 46-percent premium on Friday’s closing share price, Novartis said. The deal values the company “at approximately $12 bn on a fully diluted basis and representing an enterprise value of approximately $11 bn at the expected closing date,” it added. Until the deal is closed, each company will continue operating independently.
Avidity Biosciences develops Antibody Oligonucleotide Conjugates (AOCs) to treat serious diseases, with an initial focus on rare neuromuscular genetic 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 Novartis chief executive Vas Narasimhan. “The Avidity team has built robust programmes with industry-leading delivery of RNA therapeutics to muscle tissue,” he added. “We look forward to developing these programmes to meaningfully change the trajectory of diseases for patients.” Novartis said the proposed acquisition would expand its scope to tackle genetically defined diseases with high unmet need. Avidity’s programmes aim to address root genetic causes, restore muscle function, and potentially slow the progression of the disease.
Switzerland is home to a number of pharmaceutical giants including Roche and Novartis. Switzerland’s pharmaceutical industry is the main driver of economic growth and alone generates seven to eight percent of the country’s gross domestic product. Pharmaceutical companies are facing massive pressure from US President Donald Trump’s administration to move production to the United States. Novartis, based in Basel in northern Switzerland, announced in April that it planned to invest $23 billion in the United States over five years. Roche likewise announced plans to invest $50 billion in the United States over the next five years, in a bid to head off the threat of tariffs.
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