Novartis Eyes Avidity Biosciences Acquisition to Boost Rare Disease Pipeline

Novartis has reportedly made a takeover approach for biotech firm Avidity Biosciences to boost its drug pipeline. Avidity has three medicines in clinical trials for rare genetic disorders, including muscular dystrophy. The deal would be aimed at offsetting looming patent cliffs. Avidity's market value is around $4.7 billion, and shares have risen 23% after the report.

Swiss pharmaceutical giant Novartis has reportedly approached U.S. biotech firm Avidity Biosciences with a potential takeover offer, according to reports from the Financial Times [1]. The move is part of Novartis' strategy to bolster its drug pipeline, particularly in the area of rare genetic disorders, as the company anticipates looming patent cliffs.

Avidity Biosciences, which is focused on developing treatments for rare diseases, has three drugs in clinical trials targeting different forms of muscular dystrophy. The company's Chief Executive Officer, Sarah Boyce, has indicated that two of these drugs could potentially become "multibillion-dollar drugs" [2]. The reported deal would be a significant acquisition for Novartis under the leadership of its Chief Executive, Vas Narasimhan.

The market value of Avidity Biosciences has surged following the report, with shares trading up 23% after the Financial Times first reported the rumored deal [3]. As of August 6, 2025, Avidity Biosciences had a market cap approaching $6 billion [2].

Representatives from both Novartis and Avidity Biosciences have declined to comment on the potential deal. The discussions are still in the early stages, and there is no guarantee that the acquisition will materialize. However, the reported interest from Novartis highlights the growing trend of Big Pharma seeking strategic acquisitions to expand their drug pipelines and offset the impact of patent expirations.

References:
[1] https://www.reuters.com/business/healthcare-pharmaceuticals/novartis-weighs-deal-biotech-avidity-biosciences-ft-reports-2025-08-06/
[2] https://www.inkl.com/news/avidity-biosciences-rockets-as-novartis-reportedly-mulls-a-takeover-deal
[3] https://www.investors.com/news/technology/avidity-biosciences-novartis-rumored-takeover-deal/