Novartis has signed an agreement to acquire Avidity Biosciences for roughly US$12 billion in cash, in a strategic move to expand its neuromuscular-gene therapy offerings and strengthen its position in RNA-based medicine.
Glimpse:
Under the deal, Avidity shareholders will receive US$72 per share about a 46 % premium to the company’s last closing price. Novartis will gain access to Avidity’s Antibody Oligonucleotide Conjugates (AOC™) platform and three late-stage neuromuscular-disease programmes (for disorders such as Duchenne muscular dystrophy, myotonic dystrophy 1, and facioscapulohumeral muscular dystrophy). Avidity’s early-stage precision-cardiology business will be spun off into a separate company (SpinCo) before deal close. The acquisition is expected to close in the first half of 2026.
Swiss pharma major Novartis has announced a definitive agreement to acquire San Diego-based biotech Avidity Biosciences for approximately US$12 billion in cash. The all-cash offer amounts to US$72 per share, representing a 46 % premium on Avidity’s closing share price on 24 October 2025.
Avidity specializes in developing Antibody Oligonucleotide Conjugates (AOCs) a novel modality that combines monoclonal antibodies with oligonucleotide payloads to deliver RNA therapeutics directly to muscle tissue. The company’s pipeline includes late-stage programmes targeting severe neuromuscular diseases such as Duchenne muscular dystrophy (DMD), myotonic dystrophy type 1 (DM1), and facioscapulohumeral muscular dystrophy (FSHD).
Under the terms of the agreement, Avidity will first separate its early-stage precision cardiology programmes into a new publicly traded entity, SpinCo. Avidity shareholders will receive one share of SpinCo for every ten shares of Avidity held, and/or pro rata cash distribution depending on SpinCo’s future asset sale. Following the spin-off, Novartis will merge with a wholly-owned subsidiary to acquire all outstanding shares of Avidity.
Novartis expects that the acquisition will raise its expected 2024-2029 sales compound annual growth rate (CAGR) from roughly 5 % to around 6 %, reflecting the value the company places on the acquired assets and platform.
With this acquisition, Novartis aims to bolster its position in the rapid-growing area of rare genetic neuromuscular disorders, where there is significant unmet need and fewer treatment options. Senior leadership at Novartis have emphasised that this move will help deliver “innovative, targeted and potentially first-in-class medicines to treat devastating, progressive neuromuscular diseases.”
The transaction is subject to customary closing conditions, including regulatory approvals and shareholder consent, and is expected to be completed in the first half of 2026. Until then, both companies will continue to operate independently.
“Avidity’s pioneering AOC platform for RNA therapeutics and its late-stage assets strengthen our commitment to advancing innovative, targeted and potentially first-in-class medicines for devastating neuromuscular diseases.”
By
HB Team
