Novartis Agrees to Buy Avidity in $12 Billion Biotech Deal (4)

Novartis AG agreed to buy Avidity Biosciences Inc. in a $12 billion deal that’s the Swiss drugmaker’s biggest acquisition in more than a decade and adds several potential blockbuster treatments as generic competition looms for its current top-sellers.

Novartis will pay $72 a share in cash for the biotechnology company, representing a premium of 46% to Avidity’s closing price Friday, the company said Sunday. Bloomberg News previously reported a deal was close.

Avidity is developing experimental drugs to treat diseases including a neuromuscular illness known as myotonic dystrophy type 1, which causes progressive muscle loss and weakness. Two of three ...