Signage for Novartis AG at a building in the company’s headquarters campus in Basel, Switzerland, on Monday, Jan. 8, 2023.
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Swiss pharmaceutical giant Novartis is nearing a deal to buy biotechnology company Avidity Biosciences for more than $70 a share, Bloomberg News reported, citing a person familiar with the matter.
A deal could be announced as early as Sunday, the report said.
Novartis and Avidity didn’t immediately respond to CNBC’s requests for comment.
Avidity specializes in developing an innovative class of ribonucleic acid (RNA) therapeutics called antibody oligonucleotide conjugates. RNA-based therapeutics are a relatively new class of medications that work by altering how genes are expressed to treat or prevent diseases.
The reported discussions come as Novartis ramps up its research and development division. The company earlier this year pledged to invest $23 billion to build out its U.S.-based infrastructure, which includes plans to construct a second R&D hub in San Diego.
The company has also struck two key deals with Anthos Therapeutics and Regulus Therapeutics this year to boost its development and manufacturing of cardiovascular and kidney disease drugs.
Avidity shares closed at $49.15 on Friday. The stock, which has a market capitalization of roughly $7.2 billion, is up nearly 70% since the beginning of the year. Novartis shares closed at $130.36 on Friday.
Read the complete Bloomberg News report here.