Avidity Biosciences (RNA) stock rocketed Wednesday on a report Novartis (NVS) made an attempt to buy the rare disease-focused biotech company.
The small biotech company has three drugs in clinical testing that target different forms of muscular dystrophy. In late 2024, Chief Executive Sarah Boyce told Investor's Business Daily that two of those could be "multibillion-dollar drugs."
For Novartis, the potential deal would be one of the biggest under Chief Executive Vas Narasimhan. Avidity's market cap is approaching $6 billion after Financial Times first reported the rumored deal, citing people familiar with the matter.
Representatives of both companies declined to comment in response to inquiries from IBD.
In midday trades, Avidity Biosciences shares surged more than 21% to 46.66.
More to follow.
Follow Allison Gatlin on X/Twitter at @AGatlin_IBD.
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