INTERNATIONAL BIOTECHNOLOGY TRUST PLC ("IBT")

Novartis agrees to acquire IBT portfolio company Avidity

IBT notes the announcement yesterday 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.

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.

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