Novartis agrees to buy Avidity for $12bn

Novartis AG agreed to buy Avidity Biosciences Inc in a $12 billion deal that’s the Swiss drugmaker’s biggest acquisition in more than a decade and adds several potential blockbuster treatments, as generic competition looms for its current top-sellers.

- MICHELLE DAVIS DEIRDRE HIPWELL

Novartis will pay $72 a share in cash for the biotechnology company, representing a premium of 46% to Avidity’s closing price Friday, the company said Sunday. Bloomberg News previously reported a deal was close.

Avidity is developing experimental drugs to treat diseases including a neuromuscular illness known as myotonic dystrophy type 1, which causes progressive muscle loss and weakness. Two of three Avidity drugs expected to launch before 2030 have multibillion-dollar sales potential, according to Novartis.

Novartis shares traded about 1% lower yesterday morning in Zurich. The stock is up about 16% so far this year. Avidity rose 1.2% to $49.15 in New York trading Friday, bringing the company’s market value to about $6.8 billion.

The acquisition marks a bold move for Novartis Chief Executive Officer Vas Narasimhan, who has previously focused on deals under the $5 billion mark.