Novartis Acquires Avidity Biosciences for $12 Billion, Bolstering Neuromuscular Pipeline
Novartis has agreed to acquire Avidity Biosciences for $12 billion, marking a significant expansion of its neuromuscular disease portfolio and betting big on RNA-based therapies. The deal, announced on Sunday, will see Novartis pay $72 per share for the San Diego-based biotech, representing a 46% premium over Avidity's closing price on Friday.
Strategic Expansion into RNA Therapeutics
The acquisition gives Novartis access to Avidity's pioneering antibody oligonucleotide conjugates (AOC) platform for RNA therapeutics, which has shown promise in delivering treatments to hard-to-reach muscle tissue. This technology could potentially unlock new treatment avenues for various neuromuscular disorders.
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."
Late-Stage Pipeline and Market Potential
Avidity brings to Novartis a trio of late-stage drug candidates targeting rare neuromuscular conditions:
- Delpacibart zotadirsen (del-zota) for Duchenne muscular dystrophy (DMD)
- Delpacibart etedesiran (del-desiran) for myotonic dystrophy type 1 (DM1)
- Delpacibart braxlosiran (del-brax) for facioscapulohumeral muscular dystrophy (FSHD)
Novartis expects these programs to "unlock multi-billion-dollar opportunities" with potential product launches before 2030. The company is particularly optimistic about del-zota, which has shown promising results in phase 1/2 trials, demonstrating a statistically significant 25% increase in dystrophin production among patients amenable to exon 44 skipping.
Spin-Off and Industry Implications
As part of the deal, Avidity will spin off its early-stage precision cardiology programs into a new, publicly traded company. This move allows Novartis to focus on the neuromuscular assets while providing Avidity shareholders with continued exposure to the cardiology pipeline.
The acquisition is the second-largest in the pharmaceutical industry this year, following Johnson & Johnson's $14.6 billion purchase of Intra-Cellular Therapies in January. It underscores a growing trend of large pharmaceutical companies investing heavily in RNA-based therapies and rare disease treatments.
Sarah Boyce, CEO of Avidity, expressed confidence in the deal, saying, "We are confident that this transaction with Novartis maximizes value for our investors and will support the global expansion of our neuroscience pipeline."
The transaction is expected to close in the first half of 2026, subject to customary closing conditions and regulatory approvals.
References
- Novartis’ $12B Avidity deal shows a willingness to take big swings in neuroscience
A 46% premium paid for RNA candidates reflects what the pharma giant has sought to do for the last few years: aim at technology that fits into its own expertise.
- Novartis To ‘Bolster’ Neuromuscular Pipeline With $12B Avidity Acquisition
The deal, announced early Sunday afternoon, will see Novartis gain access to Avidity’s neuroscience assets, while the San Diego biotech spins out a new company to shepherd its early-stage precision cardiology programs.
- Novartis to acquire Avidity in $12B bet on RNA drugs for neuromuscular disease
The deal, which Novartis expects can “unlock multibillion-dollar opportunities” in the years ahead, hands the company a group of medicines for multiple forms of muscular dystrophy.
- Novartis goes big for neuroscience with $12B deal for late-stage dystrophy biotech Avidity
Almost a year after buying Kate Therapeutics, Novartis has scooped up another San Diego-based muscle dystrophy biotech in one of the biggest acquisitions of 2025 so far.
Explore Further
What are the competitive advantages of Avidity's antibody oligonucleotide conjugates (AOC) platform compared to other RNA-based therapeutic technologies in the market?
What are the efficacy and safety profiles of Delpacibart zotadirsen (del-zota) and its competitors targeting Duchenne muscular dystrophy?
How does Novartis plan to generate multi-billion-dollar opportunities from Avidity's late-stage drug pipeline specifically by 2030?
What are the strategic implications of Avidity spinning off its precision cardiology programs on the broader pharmaceutical landscape and investor interest?
What other major pharmaceutical companies are investing heavily in RNA-based therapeutics and rare disease treatments, and how does Novartis compare with those efforts?