Novartis Strengthens Rare Disease Focus with $12 Billion Avidity Biosciences Deal

In a landmark move to advance treatments for rare muscle disorders, Novartis takes a major step toward expanding its innovation footprint in the U.S. and reshaping the future of genetic medicine.

Swiss pharmaceutical giant Novartis has announced its plan to acquire U.S.-based biotech company Avidity Biosciences in a deal valued at approximately $12 billion in cash.

The acquisition highlights Novartis’ strong commitment to accelerating breakthroughs in rare diseases while broadening its research and commercial presence in the United States.

Under the agreement, Avidity shareholders will receive $72 per share in cash, marking a 46% premium from the company’s recent closing value. This acquisition continues Novartis’ momentum of strategic partnerships and purchases aimed at strengthening its long-term drug pipeline.

The acquisition will allow Novartis to tap into Avidity’s innovative RNA-based delivery platform, which enables the direct targeting of muscle tissues — a crucial advancement for treating complex neuromuscular diseases.

Avidity’s portfolio includes multiple first-in-class drug candidates that aim to address conditions that currently have limited or no treatment options.

Avidity Biosciences, based in San Diego, California, has gained recognition for its pioneering work in precision medicine. Its leading drug candidate, Del-zota, is in early-to-mid-stage development for a rare form of Duchenne muscular dystrophy.

Alongside this, the company is also developing additional treatments for other severe muscle conditions that impact mobility and quality of life.

As part of the deal, Avidity will separate its early-stage precision cardiology programs into a new publicly traded company, Spinco.

This move allows Novartis to focus its investment and expertise on Avidity’s advanced neuromuscular pipeline, while Spinco will continue exploring innovative cardiovascular therapies.

Kathleen Gallagher, Avidity’s chief program officer, will lead Spinco as it moves forward independently.

For Novartis, this acquisition represents more than an expansion of its portfolio — it reflects a clear strategic vision. The company aims to fill critical gaps in treatment for rare diseases and strengthen its scientific leadership in genetic and RNA-based medicines.

The integration of Avidity’s technology will enable Novartis to accelerate the development of next-generation therapies that can reach patients faster and more effectively.

The timing of the deal is significant. Global pharmaceutical markets are navigating shifting trade policies and growing emphasis on localized production.

Novartis’ increased U.S. presence positions it strongly amid these changes, reinforcing its role as a reliable partner in healthcare innovation.

The acquisition also aligns with the company’s ongoing efforts to diversify its revenue streams as some of its major drugs approach patent expirations.

In recent years, Novartis has actively pursued a series of targeted acquisitions designed to build leadership across key therapeutic areas. These include its $3.1 billion purchase of Anthos Therapeutics to boost cardiovascular drug development and a $1.7 billion deal with Regulus Therapeutics to strengthen its renal care pipeline.

Its partnership with Matchpoint Therapeutics, worth up to $1 billion, further enhanced its focus on developing oral medicines for inflammatory diseases.

The Avidity acquisition fits seamlessly into this pattern — combining Novartis’ global expertise with Avidity’s cutting-edge science to push the boundaries of what’s possible in rare disease treatment.

Analysts see this as a bold and timely step that underscores Novartis’ long-term commitment to medical innovation and patient well-being.

Beyond its scientific impact, the deal also sends a strong message about Novartis’ investment in U.S. biotech. By supporting Avidity’s continued work in San Diego and enabling Spinco’s independent growth, the company is contributing to the vibrancy and competitiveness of America’s life sciences sector.

As the global healthcare landscape evolves, Novartis continues to lead with vision and purpose. The acquisition of Avidity Biosciences represents not only financial growth but a deeper mission — to deliver hope and healing to patients who have long awaited effective therapies for rare, life-altering diseases.

With this move, Novartis reinforces its identity as a global innovator committed to turning groundbreaking science into real-world solutions.

The company’s continued expansion into precision and genetic medicine ensures that its legacy of excellence will remain strong for decades to come.