Novartis CEO on $12B Avidity Deal: ‘Could Have Been Twice as Big’
Novartis agreed to acquire Avidity Biosciences for $72 per share in cash, valuing the deal at approximately $12 billion as announced on October 26, 20251345.
Avidity’s pipeline includes three late-stage Antibody Oligonucleotide Conjugates programs for neuromuscular diseases, targeting DMD (Duchenne muscular dystrophy), FSHD, and DM1, with filings/readouts expected in 2026134.
Novartis CEO Vas Narasimhan stated the deal would boost Novartis' 2024-2029 sales CAGR from 5% to 6%, and further indicated there was enough strategic and financial rationale that the deal 'could have been twice as big'1.
As part of the structure, Avidity's early-stage precision cardiology programs will be spun off into a new, publicly-traded entity named 'SpinCo', capitalized with $270 million and led by Kathleen Gallagher as CEO and Sarah Boyce as chair134.
The $12 billion deal is the year's second-largest biotech acquisition, following J&J's $14.6 billion Intra-Cellular deal1.
Novartis anticipates that the acquisition will provide significant access to new RNA-based therapies for rare neuromuscular diseases and create market opportunities worth billions through planned launches before 203045.
Avidity stockholders will receive a 46% premium over the closing price as part of the agreed terms345.
The acquisition is subject to regulatory approval and expected to close in the first half of 2026, with both companies remaining independent until then4.
Sources:
1. https://ground.news/article/novartis-is-in-talks-to-buy-us-biotech-firm-avidity-biosciences-for-more-than-70-a-share-bloomberg-news-reports
3. https://pulse2.com/novartis-buying-avidity-biosciences-in-12-billion-deal/
4. https://www.bluewin.ch/en/news/novartis-to-buy-avidity-biosciences-for-12-billion-dollars-2934210.html