Novartis To Acquire Avidity Biosciences, A Leader In RNA Therapeutics, To Strengthen Its Late-Stage Neuroscience Pipeline

Novartis announced that it has entered into an agreement to acquire Avidity Biosciences, Inc., a San Diego-based biopharmaceutical company specializing in a new class of RNA-based therapeutics designed for targeted delivery to muscle tissue. The acquisition will take place following the separation of Avidity’s early-stage precision cardiology programs. Avidity is recognized for its pioneering work in developing Antibody Oligonucleotide Conjugates (AOCs™), an innovative therapeutic platform that combines the precision of oligonucleotides with the tissue-targeting capabilities of monoclonal antibodies. 

These AOCs are designed to treat serious, genetically driven neuromuscular diseases by directly targeting the root genetic causes of muscle damage. Through the acquisition, Novartis will gain access to Avidity’s advanced neuroscience programs and its proprietary RNA-targeting delivery technology. This move is expected to strengthen Novartis’ neuroscience portfolio with potential first-in-class therapeutic candidates addressing unmet medical needs in muscle-related genetic disorders.

Commenting on the acquisition, Vas Narasimhan, CEO of Novartis, stated that Avidity’s AOC platform and late-stage development programs will significantly advance Novartis’ commitment to creating targeted, disease-modifying treatments for progressive neuromuscular conditions. He emphasized that Avidity’s achievements in RNA delivery to muscle tissue complement Novartis’ mission to develop therapies that could meaningfully alter the course of severe genetic diseases. The acquisition is expected to raise Novartis’ projected sales compound annual growth rate (CAGR) for 2024–2029 from 5% to 6%, reflecting the long-term growth and value creation potential of this transaction.

The proposed acquisition aligns with Novartis’ long-term neuroscience strategy, expanding its pipeline with late-stage, genetically defined disease programs. These include potential treatments for myotonic dystrophy type 1 (DM1), a rare and progressive neuromuscular disorder with no existing disease-modifying therapy; facioscapulohumeral muscular dystrophy (FSHD), a hereditary condition that causes muscle weakness and disability; and Duchenne muscular dystrophy (DMD), a severe early-onset disease characterized by muscle deterioration and reduced life expectancy.

By integrating Avidity’s programs, Novartis aims to build one of the most advanced neuromuscular disease pipelines in the industry, leveraging its expertise in spinal muscular atrophy and its proven commercialization capabilities in genetic medicine. Avidity’s AOC platform delivers oligonucleotide payloads specifically to muscle cells, offering a targeted approach that may restore muscle function, slow disease progression, and improve patient outcomes.

Under the terms of the agreement, which has been unanimously approved by the Boards of Directors of both companies, Novartis will acquire all outstanding shares of Avidity through a merger with a newly formed indirect wholly owned subsidiary. Avidity shareholders will receive USD 72.00 per share in cash at closing, representing a 46% premium to Avidity’s closing price on October 24, 2025. The transaction values Avidity at approximately USD 12 billion on a fully diluted basis, with an enterprise value of around USD 11 billion at the expected closing date.

Before the merger closes, Avidity will spin off its early-stage precision cardiology programs and collaborations into a separate entity, SpinCo, a wholly owned subsidiary. Avidity shareholders will receive one share of SpinCo for every ten Avidity shares they own and/or a proportional cash distribution from any sale of SpinCo or its assets prior to closing. Completion of the acquisition is subject to regulatory approvals, the approval of Avidity stockholders, and the successful separation or sale of SpinCo. The companies expect the transaction to close in the first half of 2026. Until the closing, Novartis and Avidity will continue to operate as independent entities.