(Reuters) -Swiss drugmaker Novartis on Sunday said it agreed to acquire U.S. biotech firm Avidity Biosciences for about $12 billion in cash, as the company looks to bolster its portfolio of treatments for rare muscle disorders.
Avidity stockholders will receive $72 per share in cash, representing a premium of 46% to the company's closing on Friday.
Novartis has been proactively striking deals this year to address the impending patent cliff for some of its blockbuster drugs, including Entresto for heart
failure, Xolair for asthma and Cosentyx for autoimmune diseases.
Under the terms of the deal, 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 release.
With this acquisition, Novartis is expanding into areas with limited treatment options, while strengthening its presence in the rare disease landscape.
San-Diego, California-based Avidity, a clinical-stage company, is developing treatments for various muscle disorders and advancing several first-in-class drug candidates.
Its lead drug, Del-zota, is in early-to-mid-stage development as a potential treatment for a rare form of Duchenne muscular dystrophy, while the company is also working on two other drugs for serious muscle diseases.
This deal also helps Novartis to establish a stronger foothold in the U.S. market amid a potential hefty pharmaceutical tariff threat from U.S. President Donald Trump.
(Reporting by Padmanabhan Ananthan and Angela Christy in Bengaluru; Editing by Ros Russell)
