Novartis acquires Avidity Biosciences for US$12bn

Novartis AG has agreed to acquire Avidity Biosciences Inc in a US$12bn transaction, set to close in Q1 2026. The acquisition is one of the largest ever in the RNA medicine field. It brings three late-stage, clinically advanced RNA therapies targeting neuromuscular diseases into Novartis’ pipeline. According to market analyses, the first-in-class medicines target a world market of US$15bn.

First-in-class RNA pipeline

Avidity develops Antibody Oligonucleotide Conjugates (AOCs™), which deliver RNA payloads directly to muscle tissue. The RNA payloads are designed to silence disease-causing genes, restore muscle function, and slow disease progression. The three late-stage programmes target Duchenne muscular dystrophy (DMD, Phase 1/2 EXPLORE44®, delpacibart zotadirsen, del-zota), facioscapulohumeral muscular dystrophy (FSHD, Phase 1/2 FORTITUDE™, delpacibart braxlosiran, del-brax) and myotonic dystrophy type 1 (DM1, Phase 3 HARBOR™, del-desiran).

Competitive landscape

Avidity competes with several RNA-based neuromuscular programmes:

• Dyne Therapeutics (FORCE™): Antibody-oligonucleotide conjugates targeting TfR1 to silence DMPK mRNA in muscle cells, aiming to normalize splicing in DM1.

• Sarepta Therapeutics (Exon-Skipping ASOs): Antisense oligonucleotides that skip specific Dystrophin exons to produce functional protein in DMD.

• Wave Life Sciences (Stereopure Oligonucleotides): Chemically precise oligonucleotides targeting Dystrophin exons to restore correct splicing and protein expression.

• Ionis Pharmaceuticals (Antisense Oligonucleotides): Oligonucleotides that modulate splicing or mRNA stability to reduce or restore expression of disease genes.

Each approach differs in delivery, target specificity, and chemical design. Avidity’s AOCs combine tissue-targeted delivery via TfR1 with gene-silencing RNA payloads, offering potentially higher precision and muscle uptake compared to competitors.

Deal details

Prior to the closing of the merger, Avidity will spin out its early-stage precision cardiology programmes into a separate company (SpinCo). This includes collaborations and assets related to heart-focused RNA therapies. SpinCo’s assets may trigger rights of first negotiation with existing partners if sold.

The acquisition is expected to raise Novartis’ 2024-2029 sales CAGR from +5% to +6%, offering significant long-term shareholder value.

Under the merger agreement, Avidity shareholders will receive US$72.00 per share in cash, a 46% premium to the October 24, 2025 closing price. The fully diluted value of Avidity is US$12bn, with an enterprise value of US$11bn at expected closing.