The $11 billion price tag for Avidity represents a massive premium but signals Novartis's commitment to dominating the RNA therapeutics space. Their AOC platform targeting muscle diseases fills a critical gap in Novartis's pipeline, especially with the myotonic dystrophy and Pompe disease programs advancing. This aquisition could position them ahead of competitors in a therapeutic area with limited effective treatments.
Both companies have been disrupted and will need to reinvent themselves to become successful. There is certainly some value in the assets (IP for iRobot and subscriber base for Chegg) that could make them attractive to a strategic buyer at the right price.
SAP's interest in BlackLine makes strategic sense given their cloud transformation push and the need to strengthen their finance automation portfolio. The recurring revenue model and strong cusomer retention at BlackLine would complement SAP's subscription strategy nicely. Engaged Capital's timing is smart here, pushing for a sale when enterprise software consolidation is accelerating. If SAP moves forward, they could integrate BlackLine's reconciliation tech directly into their ERP ecosystem.
The $11 billion price tag for Avidity represents a massive premium but signals Novartis's commitment to dominating the RNA therapeutics space. Their AOC platform targeting muscle diseases fills a critical gap in Novartis's pipeline, especially with the myotonic dystrophy and Pompe disease programs advancing. This aquisition could position them ahead of competitors in a therapeutic area with limited effective treatments.
The spinoff of all the other assets is also interesting and reminds me of what Pfizer did after it acquired Biohaven.
Interesting that many small companies like Chegg and iRobot will remain standalone public companies.
While high risk, could provide compelling returns over the next few years if successful.
Both companies have been disrupted and will need to reinvent themselves to become successful. There is certainly some value in the assets (IP for iRobot and subscriber base for Chegg) that could make them attractive to a strategic buyer at the right price.
SAP's interest in BlackLine makes strategic sense given their cloud transformation push and the need to strengthen their finance automation portfolio. The recurring revenue model and strong cusomer retention at BlackLine would complement SAP's subscription strategy nicely. Engaged Capital's timing is smart here, pushing for a sale when enterprise software consolidation is accelerating. If SAP moves forward, they could integrate BlackLine's reconciliation tech directly into their ERP ecosystem.