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Novartis to Acquire Avidity Biosciences in $12 Billion Deal to Expand Neuroscience Portfolio

By  |  October 27, 2025

Novartis AG announced Sunday that it has agreed to acquire San Diego-based Avidity Biosciences, Inc. (NASDAQ:RNA) for approximately $12 billion in cash, a move designed to bolster its position in neuroscience and genetic disease therapeutics. The deal will provide Novartis access to Avidity’s Antibody Oligonucleotide Conjugates (AOCs) platform and three advanced programs targeting rare neuromuscular disorders, according to Reuters.

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    Under the agreement, Novartis will pay $72.00 per Avidity share, representing a 46% premium over Avidity’s closing price on October 24. The acquisition, valued significantly above Avidity’s market capitalization of $7.06 billion as reported by InvestingPro, is expected to close in the first half of 2026, pending regulatory and shareholder approvals. Per Reuters, the offer follows months of heightened investor interest, with Avidity’s stock already climbing more than 55% over the past six months.

    Before the deal is finalized, Avidity plans to spin off its early-stage precision cardiology projects into a new entity, referred to as SpinCo. Shareholders will receive one SpinCo share for every ten Avidity shares they own, or an equivalent cash distribution if any SpinCo assets are sold to another buyer.

    The acquisition will give Novartis ownership of Avidity’s proprietary AOCs platform, which merges monoclonal antibodies with oligonucleotides to deliver RNA-based therapies directly to muscle tissue. This technology underpins late-stage drug programs aimed at treating myotonic dystrophy type 1, facioscapulohumeral muscular dystrophy, and Duchenne muscular dystrophy.

    Read more: Novartis to Acquire Regulus Therapeutics in $1.7 Billion Deal

    According to Reuters, Novartis expects the deal to accelerate its revenue growth, projecting an increase in its 2024–2029 compound annual growth rate from 5% to 6%. The company also anticipates new product launches from Avidity’s pipeline before 2030, reinforcing its long-term growth strategy.

    “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 Novartis CEO Vas Narasimhan in a company statement.

    Until the transaction is completed, both firms will continue to operate independently. Although Avidity reported a loss per share of $3.57 over the past year, the acquisition premium highlights Novartis’s confidence in the company’s technology and future prospects, according to Reuters.

    Source: Reuters