Avidity Biosciences to be Acquired by Novartis

In a significant move signaling continued confidence in the burgeoning field of RNA therapeutics, Novartis AG (SIX: NOVN, NYSE: NVS) has announced its intent to acquire Avidity Biosciences (Nasdaq: RNA) for $72.00 per share in cash, valuing the company at approximately $12 billion. The deal, unanimously approved by both companies’ boards, represents a 46% premium over Avidity’s closing share price on October 24, 2025, and a 62% premium over the 30-day volume-weighted average.

The acquisition, slated to close in the first half of 2026, hinges on the successful separation of Avidity’s early-stage precision cardiology programs into a newly formed, publicly traded entity tentatively named “SpinCo.” This strategic carve-out suggests Novartis’ focused interest lies primarily in Avidity’s neuroscience pipeline and its proprietary Antibody Oligonucleotide Conjugates (AOCs™) platform.

Avidity’s AOC platform is a game-changer in RNA therapeutics, enabling targeted delivery of RNA directly to tissues previously considered unreachable. This approach combines the specificity of monoclonal antibodies with the precision of oligonucleotide therapies, offering a novel route to treating a range of diseases.

Under the terms of the agreement, Avidity shareholders will receive consideration for the SpinCo business. The details involve a distribution of SpinCo shares (one share for every ten Avidity shares held) and/or a pro rata cash distribution if certain SpinCo assets or SpinCo itself is sold to a third party before the deal closes. SpinCo will be capitalized with $270 million in cash at inception.

Strategic Rationale and Pipeline Synergies

Novartis’ acquisition of Avidity provides the Swiss pharmaceutical giant with a crucial foothold in the rapidly expanding RNA therapeutics market. The deal grants Novartis access to Avidity’s three late-stage clinical development programs: delpacibart zotadirsen (del-zota) for Duchenne muscular dystrophy (DMD), delpacibart etedesiran (del-desiran) for myotonic dystrophy type 1 (DM1), and delpacibart braxlosiran (del-brax) for facioscapulohumeral muscular dystrophy (FSHD).

These programs align with Novartis’ existing neuroscience portfolio and underscore its commitment to developing treatments for debilitating neuromuscular disorders. Furthermore, Avidity’s AOC technology provides a platform for future drug development across a broader range of therapeutic areas.

SpinCo: A Focused Cardiology Play

SpinCo, on the other hand, will concentrate on Avidity’s early-stage precision cardiology programs, including AOC 1086 and AOC 1072, which target rare genetic cardiomyopathies such as phospholamban (PLN) and Protein Kinase AMP-activated non-catalytic subunit Gamma 2 (“PRKAG2”) Syndrome. SpinCo will also inherit collaborations with Bristol Myers Squibb and Eli Lilly and Company, along with the rights to further develop Avidity’s AOC platform for cardiology applications.

Kathleen Gallagher, currently Avidity’s chief program officer, will lead SpinCo as CEO, while Sarah Boyce, Avidity’s current CEO, will serve as chair of the board, signaling a commitment to continuity and expertise within the new entity.

“We have already seen the tremendous impact targeted delivery of RNA therapeutics to muscle can have for people living with rare diseases,” said Gallagher in a statement. “Avidity’s precision cardiology pipeline is poised to progress rapidly.”

Financial Advisors

Goldman Sachs & Co. LLC and Barclays Capital Inc. are advising Avidity on the financial aspects of the transaction, with Kirkland & Ellis LLP serving as legal counsel.

The Road Ahead

While the acquisition awaits regulatory approvals and the green light from Avidity’s stockholders, the move highlights the growing importance of RNA-based therapies and the continued consolidation within the biotechnology sector. Novartis’ strategic acquisition of Avidity positions the company to be a major player in this rapidly evolving landscape. The transaction also underscores the value of innovative platform technologies like Avidity’s AOC platform, capable of unlocking new treatment avenues for previously intractable diseases.