The $12 billion purchase of Avidity by Novartis targets muscular disorders, strengthens the pipeline for rare diseases, and reduces the risks to US policy.

The U.S.-based Avidity Biosciences is being purchased by Swiss pharma major Novartis for around $12 billion in cash, offering stockholders a 46% premium.  The company announced on Sunday that it will expand the range of drugs to include novel medicines for rare muscular disorders. Stockholders of Avidity will get $72 in cash for each share, which is 46% more than the closing price of the company on Friday.

Novartis has been intensely terminating contracts this year to address the future patent cliff for some of its well-known medications, such as Cosentyx for autoimmune disorders, Xolair for asthma, and Entresto for heart disease. A second statement from Avidity says that the agreement requires the business to spin out its initial precision cardiology operations into Spinco, which is probably going to go public. The agreement improves Novartis' position within the rare disease sector and allows it to target markets with limited medicinal changes.

Avidity is supporting a variety of new drug candidates and creating treatments for a range of muscular conditions. Del-zota, the company's primary drug, is undergoing ‘early-to-mid-stage’ of research as a possible therapy for a rare form of Duchenne muscular dystrophy. Additionally, the company is investigating two distinct medications for severe muscle problems. Additionally, Novartis's position in the country is strengthened by this deal, marketing against a possible major threat from U.S. President Trump on pharmaceutical charges.