Novartis announced that it has entered into a definitive agreement to acquire Avidity Biosciences, a San Diego-based biopharmaceutical company pioneering a new class of RNA-based therapeutics designed for targeted delivery to muscle tissue. The transaction will take place following the separation of Avidity’s early-stage precision cardiology programs.
Avidity has developed a groundbreaking treatment platform named Antibody Oligonucleotide Conjugates (AOCs). This platform aims to address severe genetic neuromuscular disorders. This deal lets Novartis tap into Avidity’s top neuroscience programs and their unique RNA-targeting delivery tech. This will strengthen Novartis’s position in neuroscience. It will also provide more first-in-class treatments for genetic muscle-degenerative conditions.
“Avidity’s pioneering AOC platform for RNA therapeutics and its late-stage assets bolster our commitment to delivering innovative, targeted and potentially first-in-class medicines to treat devastating, progressive neuromuscular diseases,” said Vas Narasimhan, CEO of Novartis. “The Avidity team has built robust programs with industry-leading delivery of RNA therapeutics to muscle tissue. We look forward to developing these programs to meaningfully change the trajectory of diseases for patients.”
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The acquisition should raise Novartis’ expected sales growth from +5% to +6% for 2024–2029. This change shows a major growth chance and could boost long-term value for shareholders.
Accelerating RNA Innovation to Transform Neuromuscular Disease Treatment
The acquisition fits Novartis’ long-term neuroscience plan. It enhances their pipeline with potential near-term launches in genetic neuromuscular diseases. These conditions have urgent medical needs.
Avidity’s portfolio includes late-stage, disease-modifying therapeutic candidates targeting:
Myotonic dystrophy type 1 (DM1) is a rare and progressive disorder. There are currently no approved treatments that can change the course of the disease.
Facioscapulohumeral muscular dystrophy (FSHD) is a genetic disease. It leads to muscle weakness and loss of function over time.
Duchenne muscular dystrophy (DMD) is a serious genetic condition. It starts early and leads to muscle loss. This also shortens life expectancy.
Novartis leverages its deep history in spinal muscular atrophy (SMA) and its global know-how in genetic neuromuscular diseases for these programs.
Avidity’s AOC platform marks a big step in precision RNA medicine. It combines the tissue-targeting power of monoclonal antibodies with the precision of oligonucleotides. This allows delivery to hard-to-reach muscle cells. It targets genetic issues that cause disease and may help restore muscle function. It also has the potential to slow disease progression.
Transaction Details
Novartis will acquire all shares of Avidity Biosciences. This comes after both companies’ Boards of Directors unanimously approved the merger. The acquisition will happen through a new, wholly owned subsidiary formed by Novartis.
Shareholders of Avidity will get USD 72.00 per share in cash at closing. This amount is a 46% premium over Avidity’s closing share price on October 24, 2025. The deal values Avidity at around USD 12 billion fully diluted. At closing, the enterprise value is about USD 11 billion.
Before the transaction closes, Avidity will transfer its early-stage precision cardiology programs and related collaborations to a wholly owned subsidiary, SpinCo. Avidity shareholders will receive:
One share of SpinCo for every ten shares of Avidity held, and/or
A pro rata cash distribution from any proceeds generated if SpinCo or its assets are sold prior to closing.
Certain asset transfers may trigger a right of first negotiation with an existing collaboration partner.