Novartis has announced an agreement to acquire Avidity Biosciences, Inc., a San Diego-based biopharmaceutical company pioneering RNA delivery to muscle through its Antibody Oligonucleotide Conjugates (AOCs™) platform. The acquisition, valued at approximately USD 12 billion, will follow the separation of Avidity’s early-stage precision cardiology programs into a new entity, SpinCo.
Avidity’s AOC technology enables targeted RNA-based therapies for serious genetic neuromuscular diseases. The acquisition will bring Avidity’s late-stage neuroscience programs into Novartis, providing access to a differentiated RNA-targeting delivery platform. This move is expected to advance Novartis’s neuroscience strategy, expanding its pipeline with potential first-in-class therapies addressing the genetic drivers of muscle-damaging conditions.
“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,” said Vas Narasimhan, CEO of Novartis. “The Avidity team has built robust programs with industry-leading delivery of RNA therapeutics to muscle tissue. We look forward to developing these programs to meaningfully change the trajectory of diseases for patients.”
The acquisition is expected to raise the 2024–2029 sales CAGR for Novartis from +5% to +6%, underscoring its potential to generate significant long-term shareholder returns. It will also strengthen the company’s leadership in genetic neuromuscular diseases, building on its existing expertise in spinal muscular atrophy and commercialization capabilities.
Avidity’s programs include potential first-in-class, late-stage therapies for myotonic dystrophy type 1 (DM1), facioscapulohumeral muscular dystrophy (FSHD), and Duchenne muscular dystrophy (DMD)—all severe disorders with high unmet medical needs. The AOC platform uniquely combines monoclonal antibody tissue specificity with oligonucleotide precision, allowing targeted correction of genetic mechanisms in muscle cells to restore function and slow disease progression.
Under the terms of the transaction, Novartis will acquire all outstanding Avidity shares for USD 72.00 per share in cash, representing a 46% premium over the October 24, 2025 closing price. Avidity shareholders will also receive one share of SpinCo for every ten Avidity shares held, or a proportional cash distribution if SpinCo assets are sold.
The merger, unanimously approved by both companies’ boards, is subject to regulatory and shareholder approvals and is expected to close in the first half of 2026. Until then, Novartis and Avidity will continue to operate as independent entities.