Novartis said on Sunday it will buy U.S. biotech company Avidity Biosciences for about $12 billion in cash. The deal gives Avidity shareholders $72 a share, a 46 percent premium to the stock’s Friday close.
The Swiss drugmaker is adding a new line of rare‑disease medicines, especially for muscle disorders. Avidity’s lead product, Del‑zota, is in early‑to‑mid stage trials for a rare form of Duchenne muscular dystrophy. The company is also working on two other drugs for serious muscle diseases.
Avidity will spin off its early‑stage precision cardiology programs into a new company called Spinco, which it plans to list publicly. That move keeps Avidity focused on its core rare‑disease pipeline while creating a separate growth engine.
Novartis has been pursuing deals this year to smooth the way past looming patent expirations for blockbuster drugs such as Entresto (heart failure), Xolair (asthma) and Cosentyx (autoimmune disorders). Buying Avidity expands the company’s reach into areas with few treatment options and strengthens its U.S. presence amid potential tariff pressures.
The acquisition signals Novartis’s strategy to broaden its rare‑disease portfolio and tap new markets while securing its revenue base in the competitive pharma landscape.
Source: New York Post
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