Novartis to Acquire Avidity Biosciences in $12B Deal, Boosting Neuromuscular Pipeline

Novartis has announced its agreement to acquire Avidity Biosciences for approximately $12 billion, marking a significant expansion of its neuromuscular disease portfolio. The deal, revealed on Sunday, will see Novartis pay $72 per share for Avidity, representing a 46% premium over the biotech's Friday closing price.

Strategic Acquisition Targets RNA Therapeutics

The acquisition grants Novartis access to Avidity's pioneering antibody oligonucleotide conjugates (AOC) platform for RNA therapeutics, along with a suite of late-stage assets targeting various forms of muscular dystrophy. Novartis CEO Vas Narasimhan emphasized the strategic importance of the deal, stating, "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."

Avidity's pipeline includes candidates for Duchenne muscular dystrophy (DMD), facioscapulohumeral muscular dystrophy (FSHD), and myotonic dystrophy type 1 (DM1). The company's lead candidate for DMD, del-zota, is on track for a biologics license application submission to the FDA in the first quarter of 2026, following a recent positive pre-BLA meeting outcome.

Deal Structure and Industry Impact

As part of the transaction, Avidity will spin out its early-stage precision cardiology programs into a new, publicly traded company. This spinoff, temporarily dubbed "SpinCo," will be led by Kathleen Gallagher, Avidity's current Chief Program Officer, as CEO. Avidity stockholders will receive one share in the new company for every 10 Avidity shares they own, or a proportional cash payment if certain assets or the entire company are sold to a third party.

The Novartis-Avidity deal represents the second-largest acquisition in the pharmaceutical industry this year, following Johnson & Johnson's $14.6 billion buyout of Intra-Cellular Therapies in January. This transaction is part of a recent upswing in biotech dealmaking, which has contributed to a rally in biotech stocks.

Novartis projects that the acquisition will "unlock multi-billion-dollar opportunities with planned product launches before 2030." The deal is expected to close in the first half of 2026, subject to customary closing conditions and regulatory approvals.