Avidity Biosciences Announces Q3 2025 Financials and Novartis Acquisition Plans
In a recently issued report, Avidity Biosciences, Inc. announced its third-quarter financial results for 2025, underscoring significant corporate developments and future plans. The biopharmaceutical company is on the verge of a major transformation with the agreed merger with Novartis, valued at approximately $12 billion. This strategic acquisition is expected to maximize shareholder value while enhancing Avidity's capacity to advance its innovative neuroscience pipeline.
In October 2025, Avidity reached a definitive merger agreement with Novartis AG. This transaction was unanimously approved by the boards of both companies, setting a course for Avidity to separate its early-stage precision cardiology programs into a new subsidiary, termed SpinCo. SpinCo, which is anticipated to be publicly traded, will be managed by Kathleen Gallagher, while Sarah Boyce will remain at the helm of Avidity as chair of the board. This acquisition by Novartis allows Avidity to leverage its RNA-targeting delivery platform, which includes three late-stage clinical development programs focused on rare diseases.
For the third quarter of 2025, Avidity reported a cash position of approximately $1.9 billion, which includes net proceeds from recent public offerings. This robust financial standing is expected to fund its operations well into mid-2028. Collaboration revenues reached $12.5 million for Q3 2025, driven primarily by milestones achieved in partnerships with major entities like Eli Lilly and Company.
The company's expenditures in research and development surged to $154.9 million during the same quarter, a substantial increase from $77.2 million in Q3 2024. This rise in costs reflects Avidity’s commitment to advancing clinical trials for its therapeutic candidates, including del-zota, del-desiran, and del-brax. General administrative expenses also increased, reflecting Avidity's focus on scaling its operations in support of its expanding pipeline.
Avidity's therapeutic developments are showing promising results in critical areas. The del-zota program aims to treat patients with Duchenne muscular dystrophy. Following a pre-BLA meeting with the FDA in October 2025, Avidity is on track to submit its BLA in 2026, which could lead to accelerated approval. Early trial data demonstrated significant improvements in muscle protection and disease progression reversal after one year of treatment.
The second significant program, del-desiran, is aimed at treating myotonic dystrophy type 1, with the completion of enrollments in the Phase 3 HARBOR trial, marking a critical step towards achieving new treatment options for patients.
Finally, del-brax, intended for facioscapulohumeral muscular dystrophy, is set to enter the next phase of studies with regulatory alignments expected to facilitate quicker pathways to market approval.
Avidity looks forward with optimism as it prepares for the next steps in its clinical strategies and the merger with Novartis. With a strong financial footing and an innovative pipeline, Avidity is well-positioned to be at the forefront of transforming treatments for patients with rare diseases. As CEO Sarah Boyce put it, this merger not only benefits shareholders but significantly enhances the potential positive impact on the lives of patients.
As Avidity continues to progress, the next milestones are pivotal to the success of both the company and its mission to deliver groundbreaking RNA therapeutics. By integrating Novartis' expertise and resources, Avidity aims to broaden its reach and amplify its contributions to the biotechnology landscape. Investors and stakeholders will be closely monitoring these developments as 2026 approaches, bringing fresh opportunities for growth and innovation.
A New Chapter: Merger Agreement with Novartis
In October 2025, Avidity reached a definitive merger agreement with Novartis AG. This transaction was unanimously approved by the boards of both companies, setting a course for Avidity to separate its early-stage precision cardiology programs into a new subsidiary, termed SpinCo. SpinCo, which is anticipated to be publicly traded, will be managed by Kathleen Gallagher, while Sarah Boyce will remain at the helm of Avidity as chair of the board. This acquisition by Novartis allows Avidity to leverage its RNA-targeting delivery platform, which includes three late-stage clinical development programs focused on rare diseases.
Financial Performance Highlights
For the third quarter of 2025, Avidity reported a cash position of approximately $1.9 billion, which includes net proceeds from recent public offerings. This robust financial standing is expected to fund its operations well into mid-2028. Collaboration revenues reached $12.5 million for Q3 2025, driven primarily by milestones achieved in partnerships with major entities like Eli Lilly and Company.
The company's expenditures in research and development surged to $154.9 million during the same quarter, a substantial increase from $77.2 million in Q3 2024. This rise in costs reflects Avidity’s commitment to advancing clinical trials for its therapeutic candidates, including del-zota, del-desiran, and del-brax. General administrative expenses also increased, reflecting Avidity's focus on scaling its operations in support of its expanding pipeline.
Advancements in RNA Therapeutics
Avidity's therapeutic developments are showing promising results in critical areas. The del-zota program aims to treat patients with Duchenne muscular dystrophy. Following a pre-BLA meeting with the FDA in October 2025, Avidity is on track to submit its BLA in 2026, which could lead to accelerated approval. Early trial data demonstrated significant improvements in muscle protection and disease progression reversal after one year of treatment.
The second significant program, del-desiran, is aimed at treating myotonic dystrophy type 1, with the completion of enrollments in the Phase 3 HARBOR trial, marking a critical step towards achieving new treatment options for patients.
Finally, del-brax, intended for facioscapulohumeral muscular dystrophy, is set to enter the next phase of studies with regulatory alignments expected to facilitate quicker pathways to market approval.
Future Outlook
Avidity looks forward with optimism as it prepares for the next steps in its clinical strategies and the merger with Novartis. With a strong financial footing and an innovative pipeline, Avidity is well-positioned to be at the forefront of transforming treatments for patients with rare diseases. As CEO Sarah Boyce put it, this merger not only benefits shareholders but significantly enhances the potential positive impact on the lives of patients.
As Avidity continues to progress, the next milestones are pivotal to the success of both the company and its mission to deliver groundbreaking RNA therapeutics. By integrating Novartis' expertise and resources, Avidity aims to broaden its reach and amplify its contributions to the biotechnology landscape. Investors and stakeholders will be closely monitoring these developments as 2026 approaches, bringing fresh opportunities for growth and innovation.
Topics Health）
【About Using Articles】
You can freely use the title and article content by linking to the page where the article is posted.
※ Images cannot be used.
【About Links】
Links are free to use.