Copyright Los Angeles Times
San Diego-based Avidity Biosciences Inc. agreed to be acquired by Novartis AG in a deal valued at $12 billion. Novartis will pay $72 per share at closing, representing a premium of 46% over Avidity’s closing price on October 24 when the transaction was announced. Novartis will acquire Avidity’s programs and pipeline in neuroscience and gain access to its differentiated RNA-targeting delivery platform. Prior to the closing of the merger, Avidity will transfer to SpinCo, currently a wholly owned subsidiary of Avidity, the early-stage precision cardiology programs and collaborations of Avidity. Avidity stockholders will also receive consideration for the separation of the SpinCo business. “Avidity has expanded the possibilities of what RNA therapeutics can deliver to patients by advancing innovative science and creating an organization with a strong commitment to providing access to our potential medicines. We are confident that this transaction with Novartis maximizes value for our investors and will support the global expansion of our neuroscience pipeline,” said Sarah Boyce, chief executive and president of Avidity, in a statement. The acquisition will follow the separation of Avidity’s early-stage precision cardiology programs into SpinCo, which is expected to be a publicly traded company. SpinCo will be led by Kathleen Gallagher, currently Avidity’s chief program officer, as chief executive officer. Sarah Boyce will serve as chair of the board. SpinCo will focus on Avidity’s early-stage programs in precision cardiology. Key programs target rare genetic cardiomyopathies. SpinCo will also encompass collaborations with Bristol Myers Squibb and Eli Lilly and Company and hold rights to continue the development of Avidity’s proprietary platform, including next-generation technology improvements, for applications in the cardiology field. “We have already seen the tremendous impact targeted delivery of RNA therapeutics to muscle can have for people living with rare diseases based on the impressive advancements Avidity has made with its neuroscience programs,” said Kathleen Gallagher, currently chief program officer at Avidity, in a statement. “Avidity’s precision cardiology pipeline is poised to progress rapidly, and I am excited to lead the team that will build on our groundbreaking AOC platform with the potential to address high unmet need in cardiovascular diseases.” Goldman Sachs & Co. LLC and Barclays Capital Inc. are serving as financial advisors to Avidity and Kirkland & Ellis LLP as its legal advisor.
