Novartis to buy US biopharmaceutical firm Avidity for $12bn

(Sharecast News) - Switzerland's Novartis has agreed to buy San Diageo-based biopharmaceutical firm Avidity Biosciences for $12bn in cash. Avidity is focused on a new class of therapeutics enabling RNA delivery to muscle. Novartis said the deal will follow the separation of Avidity's early-stage precision cardiology programs.

Novartis said Avidity is committed to delivering a new class of pioneering RNA therapeutics called Antibody Oligonucleotide Conjugates (AOCs) for serious, genetic neuromuscular diseases.

"The proposed acquisition will bring Avidity's late-stage neuroscience programs into Novartis and provide Novartis access to a differentiated RNA-targeting delivery platform," it said.

"These programs are expected to advance the company's neuroscience strategy and complement the current pipeline with potential first-in-class therapeutic candidates that address the genetic drivers of muscle-damaging conditions."

Novartis said the proposed deal raises the expected 2024-2029 sales compound annual growth rate for the company to 6% from 5%, "representing a significant opportunity to deliver substantial shareholder returns over time".