Novartis relies in Basel in northern Switzerland.
Swiss pharmaceutical big Novartis introduced Sunday it had agreed to purchase Avidity Biosciences, valuing the US biopharmaceutical firm at $12 billion.
“The proposed acquisition is expected to create an industry-leading pipeline, building on the Novartis expertise in spinal muscular atrophy and commercialization capabilities in genetic neuromuscular diseases,” Novartis mentioned in an announcement.
The transfer will deliver Avidity’s late-stage neuroscience packages into the Novartis fold and provides it entry to a “differentiated RNA-targeting delivery platform,” it mentioned.
The deal is anticipated to be closed within the first half of 2026, after San Diego-based Avidity’s early-stage precision cardiology packages has been separated off into a brand new firm.
Avidity frequent inventory holders will obtain $72 per share in money when the deal closes—a 46% premium on Friday’s closing share worth, Novartis mentioned.
The deal values the corporate “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.
Till the deal is closed, every firm will proceed working independently.
RNA therapeutics
Avidity Biosciences develops Antibody Oligonucleotide Conjugates (AOCs) to deal with severe ailments, with an preliminary give attention to uncommon neuromuscular genetic problems.
“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,” mentioned Novartis chief govt Vas Narasimhan.
“The Avidity team has built robust programs with industry-leading delivery of RNA therapeutics to muscle tissue,” he added.
“We look forward to developing these programs to meaningfully change the trajectory of diseases for patients.”
Novartis mentioned the proposed acquisition would broaden its scope to deal with genetically outlined ailments with excessive unmet want.
Avidity’s packages intention to handle root genetic causes, restore muscle perform, and probably gradual the development of the illness.
US pivot
Switzerland is residence to various pharmaceutical giants together with Roche and Novartis.
Switzerland’s pharmaceutical business is the principle driver of financial progress and alone generates seven to eight p.c of the nation’s gross home product.
Pharmaceutical firms are dealing with large strain from US President Donald Trump’s administration to maneuver manufacturing to the US.
Novartis, primarily based in Basel in northern Switzerland, introduced in April that it deliberate to take a position $23 billion in the US over 5 years.
Roche likewise introduced plans make investments $50 billion in the US over the following 5 years, in a bid to move off the specter of tariffs.
© 2025 AFP
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