Novartis has reached an agreement to acquire Avidity Biosciences, Inc., a biopharmaceutical company specializing in RNA-based therapeutics, to bolster its neuroscience portfolio. This acquisition is expected to enhance Novartis”s late-stage pipeline with three programs aimed at treating genetic neuromuscular diseases. The deal follows the planned separation of Avidity”s early-stage precision cardiology programs into a new entity before the acquisition finalizes.
The acquisition is set to add Avidity”s innovative Antibody Oligonucleotide Conjugates (AOCs™) platform to Novartis”s offerings, which focuses on delivering RNA therapeutics specifically to muscle tissue. This strategic move is anticipated to significantly advance Novartis”s neuroscience strategy, introducing potential first-in-class therapies to address the underlying genetic factors of muscle-degenerative diseases.
Vas Narasimhan, CEO of Novartis, remarked, “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.” He emphasized the company”s enthusiasm for developing these programs to positively impact patient outcomes.
The acquisition is projected to increase Novartis”s expected compound annual growth rate (CAGR) in sales from +5% to +6% from 2024 to 2029, presenting a substantial opportunity for long-term shareholder returns.
Aligned with Novartis”s long-term neuroscience strategy, the addition of Avidity”s late-stage programs opens avenues for near-term product launches targeting genetically defined conditions with significant unmet medical needs. Avidity is focused on developing therapies for conditions such as myotonic dystrophy type 1 (DM1), facioscapulohumeral muscular dystrophy (FSHD), and Duchenne muscular dystrophy (DMD), all of which currently lack disease-modifying treatments.
The acquisition will create a robust pipeline that leverages Novartis”s existing expertise in spinal muscular atrophy and its capabilities in the commercialization of therapies for genetic neuromuscular diseases. Avidity”s approach aims to address the root causes of these conditions by restoring muscle function and potentially slowing disease progression through the targeted delivery of oligonucleotide payloads that correct genetic mechanisms.
The total consideration for the acquisition is set at USD 12 billion, with Avidity shareholders receiving USD 72.00 per share in cash, reflecting a 46% premium over the share price as of October 24, 2025. The deal is subject to the successful completion of the separation of Avidity”s early-stage programs and regulatory approvals, with an anticipated closing in the first half of 2026.
Until the merger is finalized, both Novartis and Avidity will continue to operate independently. An investor call is scheduled for October 27, 2025, at 1 PM CET to discuss the transaction further.
Avidity Biosciences is dedicated to developing AOCs for serious genetic disorders, with a focus on rare neuromuscular diseases. Their innovative platform is designed to achieve precise delivery of RNA therapeutics to muscle tissues, modifying disease-causing genetic mechanisms and actively integrating patient perspectives into their development process.
Novartis, a leader in innovative medicines, strives to improve and extend the lives of patients globally, reaching over 300 million individuals with its therapies.
In connection with this acquisition, Novartis, Avidity, and the new entity SpinCo plan to file relevant documents with the Securities and Exchange Commission, including a proxy statement for Avidity”s shareholders.
Shareholders are encouraged to review all relevant documents upon their availability, as they will contain essential details regarding the transaction.
