Avidity Biosciences to be Acquired by Novartis in Major Deal Worth $12 Billion

Novartis and Avidity Biosciences: A Game-Changing Merger

Avidity Biosciences, Inc. has announced a binding merger agreement with Novartis AG that marks a significant milestone within the biopharmaceutical industry. Valued at approximately $12.0 billion, this acquisition will see Novartis agree to buy Avidity for $72.00 per share in cash. This acquisition epitomizes the ongoing evolution and innovation within the realm of RNA therapeutics, as Avidity is recognized for its pioneering work in developing Antibody Oligonucleotide Conjugates (AOCs™).

Understanding the Merger and Its Implications

Avidity's board has unanimously approved the merger, which is anticipated to complete in the first half of 2026 upon meeting standard closing conditions, including necessary regulatory approvals. An intriguing component of this merger is the creation of a new entity under the name of SpinCo. Avidity plans to reallocate its early-stage precision cardiology programs into SpinCo, which will function as a publicly traded company, allowing continued growth and oversight of its cardiovascular-focused projects.

Kathleen Gallagher will serve as CEO of SpinCo, while Sarah Boyce, Avidity’s current CEO, will take on the role of chair of SpinCo’s board. This strategic move demonstrates Avidity's commitment to advancing its pipelines in both cardiology and neurology, broadening its reach in addressing rare and complex diseases.

The Financial Landscape

This acquisition reflects a premium of approximately 46% over Avidity's share price at market close on October 24, 2025. Such a valuation represents a confident outlook toward Avidity’s potential in RNA therapeutics. Investors holding Avidity common stock can expect a cash payout of $72.00 per share, substantiating the value proposition of this merger.

In addition to cash distributions, shareholders will also receive shares of SpinCo. For every ten shares of Avidity, they will obtain one share of the new entity, which is projected to start trading publicly soon after the official spin-off.

A Heavy Focus on RNA Therapeutics

Avidity's reputation lies in its revolutionary platform that seeks to deliver RNA therapeutics more effectively to patients. Their dedication to enhancing the quality of care through innovative treatments aligns perfectly with Novartis’s portfolio, which emphasizes leadership in the neuroscience sector. Moreover, the merger provides Novartis with direct access to Avidity's advanced RNA-targeting delivery technology.

Already, Avidity has made strides in its clinical development programs targeting rare diseases such as Duchenne muscular dystrophy (DMD) and myotonic dystrophy type 1 (DM1). The continuity of Avidity’s pipeline will enhance Novartis’ offerings in the neurology space and potentially expedite the advancement of those highly anticipated therapies into the market.

Moving Forward: Closing the Deal

As both companies anticipate the merger's closing, operations will continue as separate entities until all conditions for the acquisition are fully satisfied. Financial advisement for Avidity comes from Goldman Sachs & Co. LLC and Barclays Capital Inc., with Kirkland & Ellis LLP ensuring legal representation throughout the deal.

Overall, this collaboration is poised to not only redefine how Avidity operates under Novartis’s umbrella but also promises to impact the treatment landscape significantly, especially for those affected by genetic and rare diseases.

Conclusion: A Vision of Innovation

Avidity Biosciences stands at a crossroads of innovation and expansion, armed with a strategic partnership that enhances its capabilities in RNA therapeutics. With leading figures from both organizations at the helm, SpinCo is set to navigate the complexities of precision cardiology while Novartis leverages Avidity's groundbreaking advancements in neurological treatments.

As the industry awaits the official completion of this transformative agreement, the focus will remain on fostering advancements that can profoundly change patient care and therapeutic outcomes globally.