Cookies & Privacy

We use essential cookies to make our site work. With your permission, we’ll also use analytics and marketing cookies to improve your experience. You can change your choice anytime.

See our Privacy Policy for details.

Manage preferences
Back to Industry News
Medtech

Novartis CEO Justifies $12 Billion Avidity Deal Amid Data Wait

Summary generated with AI, editor-reviewed
Heartspace News Desk
Source: Reuters
TL;DR

Novartis acquired Avidity Biosciences for $12 billion to secure a muscle disorder treatment despite lacking late-stage data, as CEO Vas Narasimhan viewed waiting for the data's release as potentially more expensive. This is Novartis's largest acquisition under Narasimhan, reflecting a strategy to strengthen its drug pipeline via strategic deals, and analysts speculate this could foreshadow more biotech mergers and acquisitions.

Key takeaways

  • Novartis defended its $12 billion acquisition of Avidity Biosciences, a U
  • firm developing a treatment for muscle disorders, despite the absence of late-stage data
  • CEO Vas Narasimhan characterized the acquisition, Novartis's largest under his leadership, as a calculated risk
Novartis defended its $12 billion acquisition of Avidity Biosciences, a U.S. firm developing a treatment for muscle disorders, despite the absence of late-stage data. CEO Vas Narasimhan characterized the acquisition, Novartis's largest under his leadership, as a calculated risk. He stated that delaying the purchase until after the data release could have resulted in a significantly higher price. This strategic acquisition is part of Novartis's broader initiative to bolster its drug development pipeline through strategic deals. Analysts suggest this move may signal an increase in merger and acquisition activity within the biotechnology sector.

Related Topics

NovartisAvidity Biosciencesacquisitionpharmaceuticalsmedtech

Verified mention available

Free to claim

Is this your company?

Set up real-time alerts and keep your Heartspace News coverage accurate. Verified teams can update profiles, request corrections, and collaborate on future stories.

Set up alerts Takes under 1 minute • Verified manually

Share Your Thoughts

(0 comments)

Be the first to share your thoughts on this article!

Stay Updated

Create alertsRead original