(Reuters) – Swiss drugmaker Novartis () said on Sunday it has agreed to buy U.S. biotechnology firm Avidity Biosciences for about $12 billion in cash, as the company looks to bolster its portfolio of treatments for rare muscle diseases.
Under the terms of the deal, Avidity shareholders will receive $72 per share in cash, representing a 46% premium to the company’s close on Friday. Bloomberg News reported on the deal previously, citing a person familiar with the matter.
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Novartis has been proactively making deals this year to deal with looming patent losses on some of its blockbuster drugs, including Entresto for heart failure, Xolair for asthma and Cosentyx for autoimmune diseases.
Under the terms of the agreement, Avidity will separate its early-stage precision cardiology programs into a new company called Spinco, which is expected to be a publicly traded company, Avidity said in a separate statement.
With this acquisition, Novartis is expanding into areas with limited treatment options while strengthening its presence in the rare disease space.
Avidity, a clinical trials company based in San Diego, California, is developing treatments for several muscle disorders and advancing several front-line drug candidates.
Its lead drug, Del-zota, is in development as a possible treatment for a rare form of Duchenne muscular dystrophy, and the company is also working on two other drugs for serious muscle diseases.
(Reporterem by the Way of Ananner in Ananale Em Banglurue) Bengalrue)
