In a bold step that cements its place at the forefront of genetic medicine, Novartis AG announced Sunday that it will buy Avidity Biosciences Inc. for $12 billion, marking one of the year’s most significant biotech acquisitions.
The Swiss pharma giant agreed to purchase the California-based developer of RNA therapeutics for $72 per share in cash, representing a 46% premium over Avidity’s Friday Nasdaq closing price of $49.15. Both companies’ boards have unanimously approved the transaction.
The acquisition underscores Novartis’ ambition to expand its neuroscience and RNA therapy pipeline, betting big on next-generation solutions for neuromuscular diseases — conditions often deemed untreatable until now.
A Deal That Marries Science and Strategy
Under the agreement, Covington & Burling LLP is advising Novartis, led by partners Catherine Dargan, Michael Riella, and Alicia Zhang. Kirkland & Ellis LLP is representing Avidity, with a team headed by corporate partners Graham Robinson, Laura Knoll, Greg Schuster, and Merric Kaufman, and capital markets partners Jen Lee and Tamar Donikyan.
Avidity specializes in antibody oligonucleotide conjugates (AOCs) — an emerging class of RNA-based drugs designed to precisely target genetic disorders that impact muscle function. The company’s pipeline includes therapies for serious neuromuscular diseases, with promising clinical data that caught Novartis’ attention.
“Avidity’s technology enhances our commitment to delivering innovative, targeted, and potentially first-in-class medicines to treat devastating, progressive neuromuscular diseases,” said Vas Narasimhan, CEO of Novartis.
