Novartis buys Avidity Biosciences at a cost of 12 billion dollars, and this is a good indication that investment confidence is coming back to the market and the global BioTech industry is increasing at an accelerated pace.

A significant step for the BioTech industry has been made with Novartis declaring the purchase of Avidity Biosciences, worth 12 billion dollars, which specializes in rare diseases. The acquisition was announced on Sunday, with Avidity worth 72 dollars per share, which is not only a 47 percent premium over its last closing price but also an 88 percent upsurge of its worth in early August.

This move is a good sign to analysts that there is renewed confidence in BioTech investments following a slow period of growth. The takeover indicates a developing trend of pharmaceutical power engineering to fill out their drug development processes with strategic acquisitions.

The investment, SPDR S&P BioTech ETF (XBI), shot up 2.6% after the announcement, and peer firms, such as Dyne Therapeutics, also noted a sharp rise. The innovation-driven recovery of the sector is also validated, according to experts, by the deal.

The gene therapy additions of Novartis, such as Zolgensma, will be complemented with RNA-based therapies and neuroscience programs against muscular dystrophy developed by Avidity. This trade may enable Novartis to boost its sales by 6 percent per annum within the period 2024 to 2029.

This acquisition makes Novartis part of the newly acquired companies, such as Pfizer and Bristol Myers Squibb, in driving a strong trend of BioTech mergers, which strengthens the regaining industry trend.