Swiss pharmaceutical giant Novartis (NVS) is buying biotechnology company Avidity Biosciences (RNA) for $12 billion U.S. in cash.
In a news release, Novartis said that it will pay Avidity shareholders $72 U.S. a share, a 46% premium to the company’s last closing price.
The deal is expected to be finalized in the first half of 2026 after Avidity spins off parts of its business, including its early-stage cardiology programs.
Novartis raised the forecast for its annual sales growth rate between 2024 and 2029 to 6% from 5% as a result of this acquisition.
Avidity specializes in developing an innovative class of ribonucleic acid (RNA) therapeutics called antibody oligonucleotide conjugates.
RNA-based medicines are a new class of therapies that work by altering how genes treat and prevent disease.
The Avidity deal comes as Novartis ramps up its research and development (R&D) business unit.
Earlier this year, Novartis announced that it would invest $23 billion U.S. in infrastructure, including a second R&D centre in San Diego, California.
Avidity Biosciences’ shares closed at $49.15 U.S. on Oct. 24. The stock is up 44% and trading at $70.55 U.S. on news of the Novartis acquisition.
As for the stock of Novartis, it is up 34% this year and trading at $130.36 U.S. per share.
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