Novartis Avidity Biosciences in talks
A sign for Novartis AG on a building on the company’s headquarters campus in Basel, Switzerland, on Monday, Jan. 8, 2023.
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Swiss pharmaceutical giant Novartis Nearing deal to acquire biotech company Avidity Biosciences at a price of more than $70 per share, Bloomberg News reportedQuoting someone who knows the subject.
The report stated that a deal could be announced as early as Sunday.
Novartis and Avidity did not immediately respond to CNBC’s requests for comment.
Avidity specializes in the development of an innovative class of ribonucleic acid (RNA) therapeutics called antibody oligonucleotide conjugates. RNA-based therapeutics are a relatively new class of drugs that work by changing how genes are expressed to treat or prevent diseases.
The reported discussions come as Novartis strengthens its research and development division. Earlier this year, the company pledged to invest $23 billion to build its US-based infrastructure; this includes plans to establish a second R&D center in San Diego.
The company also signed two major agreements this year with Anthos Therapeutics and Regulus Therapeutics to expand the development and production of cardiovascular and kidney disease drugs.
Avidity shares closed at $49.15 on Friday. The stock, which has a market value of approximately $7.2 billion, has increased by almost 70% since the beginning of the year. Novartis shares closed at $130.36 on Friday.
