Novartis to Acquire Avidity Biosciences in $12 Billion Cash Deal
Swiss pharmaceutical leader Novartis has announced plans to acquire U.S.-based biotechnology company Avidity Biosciences in a deal valued at approximately $12 billion. The move marks one of the largest acquisitions in the biotech sector this year and reinforces Novartis’s commitment to expanding its portfolio of RNA-based therapeutics.
Under the agreement, Novartis will pay Avidity shareholders $72 per share in cash, representing a 46 percent premium over Avidity’s closing price on Friday. The transaction is expected to close during the first half of 2026, pending regulatory approvals and customary closing conditions.
As part of the acquisition process, Avidity plans to spin out some of its business segments, including its early-stage precision cardiology programs, before the deal is finalized.
Strategic Expansion in RNA Therapeutics
Novartis CEO Vas Narasimhan praised Avidity’s progress in advancing RNA therapeutics, particularly in the area of muscle-targeted treatments. “The Avidity team has built robust programs with industry-leading delivery of RNA therapeutics to muscle tissue,” Narasimhan said in a statement. “We look forward to developing these programs to meaningfully change the trajectory of diseases for patients.”
The acquisition will give Novartis access to Avidity’s proprietary platform for delivering RNA therapies directly to muscle tissue, a field that has attracted growing interest for its potential to treat rare genetic diseases. This aligns with Novartis’s long-term focus on innovation in gene and cell therapy, RNA technologies, and precision medicine.
A Boost to Novartis’s Growth Forecast
Following the announcement, Novartis raised its compound annual sales growth forecast between 2024 and 2029 from 5 percent to 6 percent, reflecting the expected contribution from Avidity’s portfolio. The company said the acquisition will strengthen its pipeline and drive long-term value creation through new therapies targeting unmet medical needs.
Novartis has been actively reshaping its business strategy, focusing on high-growth therapeutic areas and divesting non-core operations. This acquisition continues that momentum, signaling confidence in the potential of RNA-based treatments to become a major driver of growth for the company over the next decade.
About Avidity Biosciences
Avidity Biosciences, based in La Jolla, California, is a clinical-stage biotechnology company developing RNA-based therapeutics for rare muscle diseases. The company’s proprietary technology, known as Antibody Oligonucleotide Conjugates (AOCs), is designed to precisely deliver RNA therapeutics to specific tissues.
Avidity’s lead programs target conditions such as myotonic dystrophy type 1 (DM1), Duchenne muscular dystrophy (DMD), and facioscapulohumeral muscular dystrophy (FSHD). The company’s approach has drawn attention in the biotech industry for its potential to overcome delivery challenges that have limited RNA therapies in the past.
Before the acquisition closes, Avidity will spin out certain parts of its pipeline unrelated to the RNA muscle programs that Novartis is acquiring. This will allow the company’s early-stage precision cardiology and other exploratory assets to continue development independently.
Market Impact and Industry Reaction
News of the acquisition sent Avidity Biosciences shares soaring after the announcement, reflecting strong investor confidence in the deal. Analysts view the acquisition as a bold move that strengthens Novartis’s position in the RNA therapeutics space, an area that has become increasingly competitive following breakthroughs in mRNA and gene-editing technologies.
Industry observers note that Novartis has a history of strategically acquiring innovative biotech firms to enhance its research capabilities and product pipeline. The Avidity deal fits within this pattern, as Novartis continues to invest heavily in next-generation therapies that address rare and complex diseases.
A Step Toward the Future of Medicine
For Novartis, the acquisition of Avidity Biosciences represents more than just an expansion—it signals a continued shift toward science-driven innovation aimed at transforming the treatment landscape for patients with severe and rare disorders.
With Avidity’s expertise in RNA delivery technology and Novartis’s global development and commercialization power, the partnership could accelerate the availability of new therapies that were once considered out of reach.
The deal is another sign that pharmaceutical companies are betting heavily on RNA-based approaches as the next major frontier in drug development. As the industry evolves, Novartis’s acquisition of Avidity could become a defining moment in the race to unlock the full potential of RNA therapeutics.
