Novartis to Acquire RNA Therapeutics Innovator Avidity Biosciences for $12 Billion to Bolster Neuroscience and Muscle Disease Pipeline

Novartis announced a definitive agreement to acquire Avidity Biosciences, Inc. (Nasdaq: RNA), a San Diego-based biopharmaceutical company specializing in a groundbreaking new class of RNA therapeutics called Antibody Oligonucleotide Conjugates (AOCs™). Avidity focuses on enabling RNA delivery specifically to muscle tissue for serious, genetic neuromuscular diseases.

Acquisition Value: Novartis will pay $72.00 per share in cash, representing a 46% premium over Avidity’s closing share price on October 24, 2025. The total value of the company is approximately $12 billion on a fully diluted basis, with an enterprise value of approximately $11 billion.
Timeline: The merger, which has been unanimously approved by both Boards of Directors, is expected to close in the first half of 2026, subject to regulatory and stockholder approval, and the completion of the Avidity spin-off.
Financial Impact: The proposed acquisition is expected to raise the projected 2024-2029 sales CAGR for Novartis from +5% to +6%.

Pipeline and Platform Synergy

The acquisition is designed to significantly advance Novartis’s neuroscience strategy by integrating Avidity’s late-stage neuroscience programs and its differentiated RNA-targeting delivery platform.

Key Assets Acquired:

Disease Target	Program Stage	Significance
Myotonic Dystrophy Type 1 (DM1)	Late-stage	Rare, progressive disorder with poor prognosis and currently no disease-modifying therapies.
Facioscapulohumeral Muscular Dystrophy (FSHD)	Late-stage	Rare hereditary disorder causing relentless loss of muscle function.
Duchenne Muscular Dystrophy (DMD)	Late-stage	Severe, early-onset disease marked by progressive muscle damage.

Platform Technology (AOCs™): The platform combines the tissue specificity of monoclonal antibodies with the precision of oligonucleotides, enabling targeted delivery of disease-specific oligonucleotide payloads to previously hard-to-reach muscle cells. This approach aims to correct underlying genetic mechanisms, restore muscle function, and potentially slow disease progression.

Novartis CEO Vas Narasimhan stated that Avidity’s platform and late-stage assets “bolster our commitment to delivering innovative, targeted and potentially first-in-class medicines” and will “meaningfully change the trajectory of diseases for patients.”

Pre-Merger Spin-Off of Cardiology Assets

Prior to the closing of the acquisition, Avidity will separate its early-stage precision cardiology programs and collaborations into a newly formed, wholly owned subsidiary called SpinCo.

SpinCo Distribution: Holders of Avidity common stock will receive:
1. A distribution of one share of SpinCo for every ten shares of Avidity they hold.
2. A pro rata cash distribution if certain SpinCo assets or SpinCo itself is sold to a third party before the merger closes.