(MENAFN) Switzerland-based pharmaceutical giant Novartis has revealed that it has reached an agreement to acquire U.S. biotechnology firm Avidity Biosciences for around $12 billion.

This acquisition is seen as a strategic move to bolster Novartis' presence in the neuroscience sector, particularly with the addition of three advanced-stage programs focused on treating genetic neuromuscular disorders.

In a statement released on Sunday, Novartis emphasized that the transaction will strengthen its neuroscience division.

"Transaction strengthens neuroscience franchise for Novartis with three late-stage programs that address genetic neuromuscular diseases," the company said.

The deal values Avidity at roughly 46% above its closing stock price on October 25, as traded on the New York Stock Exchange.

As part of the agreement, Avidity will shift its early-stage precision cardiology programs to a new entity named Spinco.

The transaction is projected to be finalized in the first half of 2026, subject to receiving the necessary regulatory approvals.

Novartis anticipates that this acquisition will enhance its portfolio for rare muscle disorders, expanding its ability to provide innovative treatments.

"Avidity’s pioneering AOC platform for RNA therapeutics and its late-stage assets bolster our commitment to delivering innovative, targeted and potentially first-in-class medicines to treat devastating, progressive neuromuscular diseases,” stated Vas Narasimhan, CEO of Novartis.

Narasimhan further added, “The Avidity team has built robust programs with industry-leading delivery of RNA therapeutics to muscle tissue. We look forward to developing these programs to meaningfully change the trajectory of diseases for patients.”

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