Swiss drugmaker Novartis acquires U.S. biotech firm Avidity Biosciences for $12 billion in cash to boost rare muscle disorder treatments. Avidity stockholders to receive $72 per share, 46% premium to Friday’s close. Novartis aims to address patent cliff with deals for drugs like Entresto, Xolair, and Cosentyx.

Avidity to separate precision cardiology programs into Spinco, a new publicly traded company. Novartis expands portfolio into rare disease treatment areas with limited options. Avidity, based in San Diego, focuses on muscle disorder treatments, including lead drug Del-zota for Duchenne muscular dystrophy.

Avidity developing three experimental drug candidates for rare neuromuscular disorders, using technology to deliver RNA therapeutics to muscle tissue. Kathleen Gallagher to lead Spinco after spin-off. Novartis deal strengthens U.S. market presence amid potential pharmaceutical tariff threat from President Trump.

Major pharmaceutical companies like Johnson & Johnson, Roche, and Sanofi pledge billions in U.S. investments to navigate uncertain trade policies. Trump administration imposed 39% tariffs on Switzerland in August, impacting Swiss exports. Pharmaceutical companies exempted from initial U.S. duties.

Read more at Yahoo Finance: Novartis to acquire Avidity Biosciences for about $12 billion