Swiss drugmaker Novartis will acquire U.S. biotech Avidity Biosciences for $12 billion (17.17 trillion won).
According to foreign media including the Financial Times (FT) on the 26th (local time), Novartis said it signed an acquisition agreement that day with Avidity Bio, headquartered in San Diego. Following Tourmaline Bio last month, this marks a second consecutive monthly acquisition of a U.S. biotech, and it is the largest transaction by Novartis in the past 10 years.
Avidity is developing treatments for serious diseases, including rare genetic neuromuscular disorders, using its antibody-oligonucleotide conjugate (AOC) technology. The AOC technology delivers ribonucleic acid (RNA) selectively to specific tissues via antibodies, boosting treatment efficiency and minimizing side effects.
Novartis, which secured an RNA therapy platform through this acquisition, said it will strengthen its presence in rare diseases.
Vas Narasimhan, Novartis CEO, said, "We will strengthen our commitment to leading drug development for progressive neuromuscular diseases through Avidity's innovative AOC platform and late-stage clinical programs," adding, "Of Avidity's three late-stage drug candidates, two have the potential to generate several billion dollars in annual sales, and the other could bring in $500 million to $1 billion a year."
Along with the acquisition announcement that day, Novartis raised its 2024–2029 compound annual sales growth outlook to 6% from 5%.