Swiss pharmaceutical company Novartis announced that it has reached an agreement to acquire U.S.-based biotechnology firm Avidity Biosciences in a cash deal valued at approximately $12 billion, aimed at expanding its pipeline of therapies for rare muscle disorders.
The acquisition aligns with Novartis’ strategy to counterbalance the expected patent expirations of several of its key drugs, including Entresto for heart failure, Xolair for asthma, and Cosentyx for autoimmune conditions. Under the agreement, Avidity will spin off its early-stage precision cardiology programs into a newly formed, publicly traded entity named Spinco, the company confirmed in a separate statement. Kathleen Gallagher, who currently serves as Avidity’s chief program officer, is set to lead Spinco following the separation.
Based in San Diego, California, Avidity Biosciences is a clinical-stage company focused on developing therapies for muscle disorders and advancing several first-in-class drug candidates. Avidity’s lead drug, Del-zota, is in early-to-mid-stage testing for a rare type of Duchenne muscular dystrophy. The company is also pushing ahead with two other experimental treatments aimed at serious muscle diseases. Valued at nearly $6.7 billion, Avidity is developing three drug candidates for rare neuromuscular disorders, all using its own RNA delivery technology to target muscle tissue directly. The firm expects these programs to head for regulatory review by 2026.
Industry analysts note that the move reinforces Novartis’ long-term expansion in rare diseases and fits a pattern consistent with its previous deals. The acquisition follows the company’s November 2024 purchase of Kate Therapeutics, which focuses on gene therapies for neuromuscular diseases, as well as earlier transactions such as the $3.1 billion acquisition of Anthos Therapeutics in February to boost cardiovascular treatments and a $1.7 billion deal with Regulus Therapeutics in April for kidney disorder therapy. Additionally, in July, Novartis entered a collaboration worth up to $1 billion with Matchpoint Therapeutics to develop oral medicines targeting inflammatory conditions.
