Novartis Acquires Avidity Biosciences, Boosting RNA Therapeutics and Neuroscience Pipeline
Novartis announced its intention to acquire Avidity Biosciences, significantly enhancing its pipeline in RNA therapeutics and neuroscience. This strategic move aims to address genetic neuromuscular diseases through three late-stage clinical programs.
Details of the Acquisition
The merger is valued at approximately $12 billion in cash and is expected to close in the first half of 2026, pending the separation of Avidity’s early-stage precision cardiology programs into a new entity named SpinCo. Shareholders of Avidity will receive $72.00 per share, marking a premium of 46% over the closing price on October 24, 2025.
- Valuation: $12 billion
- Shareholder payout: $72.00 per share
- Expected closing: H1 2026
Strategic Implications
This acquisition is set to boost Novartis’s anticipated compound annual growth rate (CAGR) for sales from 5% to 6% between 2024 and 2029. It also expands their neuroscience strategy, addressing evolving therapeutic needs for rare genetic neuromuscular disorders.
Focus on Neuromuscular Diseases
Avidity’s innovative platform, Antibody Oligonucleotide Conjugates (AOCs
), facilitates the targeted delivery of RNA therapeutics directly to muscle tissue. The three key programs included in the deal focus on:
- Myotonic Dystrophy Type 1 (DM1)
- Facioscapulohumeral Muscular Dystrophy (FSHD)
- Duchenne Muscular Dystrophy (DMD)
These therapies represent a significant advance in addressing the genetic mechanisms behind these debilitating conditions.
Statements from Leadership
Vas Narasimhan, CEO of Novartis, expressed enthusiasm about the acquisition: “Avidity’s pioneering AOC platform for RNA therapeutics and its late-stage assets bolster our commitment to delivering innovative medicines to treat progressive neuromuscular diseases.”
Future Prospects
Novartis aims to further develop Avidity’s programs to improve patient outcomes significantly. By integrating these late-stage candidates into its pipeline, Novartis is positioning itself as a leader in the treatment of genetic neuromuscular disorders.
Investors can expect further updates as the transaction progresses, including a conference call scheduled for October 27, 2025, to discuss the merger details.
