Novartis is acquiring Avidity Biosciences in a $12 billion all-cash deal to access experimental treatments for neuromuscular diseases. The purchase price of $72 per share represents a 46.5% premium to Avidity’s closing price on Friday. Avidity stock surged over 40% following the announcement, with Novartis expanding its RNA-based therapies through the acquisition.

The acquisition will give Novartis access to Avidity’s late-stage experimental treatments for genetic neuromuscular diseases utilizing RNA therapeutics called AOC. The deal is expected to close in the first half of next year, with Novartis projecting an increase in sales compound annual growth rate from 5% to 6% by 2024-2029.

Shares of Dyne Therapeutics jumped over 40% after analysts suggested that the company, also developing RNA therapies for neuromuscular diseases, would benefit from Novartis acquiring Avidity. Avidity shares have risen 140% since the beginning of the year, while Dyne stock has moved into positive territory. Novartis U.S.-listed shares were down 1% amid the news.

Read more at Yahoo Finance: Why Avidity Biosciences And Dyne Therapeutics Stocks Soared 40% Monday