RCS - Intnl. Biotechnology - Novartis to acquire IBT portfolio company Avidity

International Biotechnology TrustAnnouncement

27/10/2025 11:00

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RNS Number : 9527E  Intl. Biotechnology Trust PLC  27 October 2025

INTERNATIONAL BIOTECHNOLOGY TRUST PLC ("IBT")

Novartis agrees to acquire IBT portfolio company Avidity

IBT notes the announcement yesterday
(https://www.novartis.com/news/media-releases/novartis-agrees-acquire-avidity-biosciences-innovator-rna-therapeutics-strengthening-its-late-stage-neuroscience-pipeline)
that Avidity Biosciences, Inc. ("Avidity") has entered into an agreement to be
acquired by Novartis for $12 billion in cash.

Based in San Diego, Avidity is a biopharmaceutical company developing a new
class of RNA therapies for serious, genetic neuromuscular diseases. Addressing
areas of high unmet medical need, the company has three late-stage clinical
programs in development, targeting Duchenne muscular dystrophy, myotonic
dystrophy type 1 and facioscapulohumeral muscular dystrophy.

Under the terms of the agreement, Avidity shareholders will receive USD 72.00
per share in cash at closing, representing a premium of 46% to the closing
share price on 24 October. As at close of business on 23 October, Avidity was
the eighth-largest holding in IBT's quoted portfolio and represented 2.55% of
IBT's Net Asset Value, as included in IBT's most recent regular daily NAV
update
(https://www.londonstockexchange.com/news-article/IBT/net-asset-value-s/17295237)
.

Commenting on the news, Ailsa Craig and Marek Poszepczynski, portfolio
managers of IBT, said:

"Novartis's acquisition of Avidity marks IBT's ninth M&A transaction
involving a portfolio holding this year, and our 34th since 2020. By thinking
like pharmaceutical business development departments, we have continued to
successfully identify attractive acquisition targets, providing a substantial
boost to shareholders' returns. With major pharmaceutical companies facing
significant patent cliffs in the coming years, we expect this robust M&A
environment to continue, providing further opportunities for IBT to take
advantage."

The updated valuation of IBT's holding in Avidity will be included in IBT's
NAV as at close of business today, to be reported in the usual way tomorrow
morning, 28 October.

To sign up for IBT updates by email, please click here
(https://www.schroders.com/en-gb/uk/individual/never-miss-an-update/) .

ENDS

 

Enquiries:

 

 Schroder Investment Management Limited

 Kirsty Preston (PR)                                                  020 7658 6000

 Natalia de Sousa (Company Secretary)                                 020 7658 6000

 Kaso Legg Communications (Financial PR)                              IBT@kl-communications.com (mailto:IBT@kl-communications.com)

 Charles Gorman

 Henry Taylor

 Effie Aye Maung Hider

 

 

 

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