Novartis AG is seeking to raise debt financing to help fund its $12 billion acquisition of Avidity Biosciences Inc, according to Bloomberg Markets. The Swiss pharmaceutical giant is tapping capital markets to secure funding for the biotech takeover, joining a wave of companies leveraging debt markets for major M&A transactions.

This financing move comes as Novartis aims to strengthen its position in the biotechnology sector through strategic acquisitions. The $12 billion deal for Avidity represents one of the larger biotech acquisitions in recent months, highlighting the intense competition and consolidation in the pharmaceutical industry. By using debt financing, Novartis can preserve cash while still executing on its growth strategy.

The debt offering underscores how companies are increasingly turning to capital markets to fund transformative deals. With interest rates and market conditions creating opportunities for large corporations to access financing, Novartis joins other major players in using debt to fuel expansion through acquisitions. The successful completion of this financing will be crucial for Novartis to close the Avidity acquisition and deliver on its strategic objectives in the biotech space.