Bristol to Pay Avidity Up to $2.3 Billion in Heart Drug Deal (1)

Bristol Myers Squibb Co. agreed to pay as much as $2.3 billion to collaborate with Avidity Biosciences Inc. on developing drugs to treat rare heart conditions.

Avidity will receive an upfront payment of $60 million in cash along with a $40 million purchase of its stock at a price of $7.88 a share, the companies said Tuesday in a statement. The rest of the payments depend on hitting research, development and sales goals. Avidity is also eligible for potential royalties.

Avidity’s shares rose as much as 30% at the US market open, the most intraday since December, after ...