“The agreement, once finalized, is expected to create a giant in the pharmaceutical industry, leveraging Novartis’ expertise in spinal muscular atrophy and its capabilities in commercializing genetic neuromuscular diseases,” Novartis stated in a press release.
The agreement is anticipated to be completed in the first half of 2026 and will be followed by the separation of Avidity’s early-stage precision cardiology programs into a new company.
Common stockholders of Avidity will receive $72 (approximately €62 at the current exchange rate) per share in cash upon the completion of the agreement, representing a 46% premium over the stock’s closing price on Friday, Novartis reported.
The deal values the company at approximately $12 billion on a fully diluted basis and represents an enterprise value of approximately $11 billion (€9 billion) at the time of the transaction’s conclusion, added the Swiss company.
Avidity Biosciences is developing antibody-oligonucleotide conjugates (AOC) to treat serious diseases, with an initial focus on rare genetic neuromuscular diseases.
Avidity’s proprietary platform is designed to enable targeted delivery of RNA-based therapies to muscle tissue, thus modulating the genetic mechanisms causing disease.
“Avidity’s pioneering AOC platform for RNA-based therapies and its advanced-stage assets reinforce our commitment to providing innovative, targeted, and potentially groundbreaking medicines to treat progressive and devastating neuromuscular diseases,” said Vas Narasimhan, CEO of Novartis.
“The Avidity team has developed robust programs with cutting-edge delivery of RNA-based therapies into muscle tissue. We look forward to expanding these programs to significantly change the disease trajectory for patients,” he added in a statement.
Pharmaceutical companies are under significant pressure from the administration of former U.S. President Donald Trump to relocate their production to the U.S.
Novartis, headquartered in Basel, northern Switzerland, announced in April its intention to invest $23 billion (over €19 billion) in the U.S. over five years.
