BIOTECH M&A ALERT: Novartis Strikes $12B Deal to Acquire Avidity Biosciences, Strengthening Neuroscience Pipeline – ( $NVS $RNA $IBB $XBI)

Swiss pharmaceutical giant Novartis AG (NVS) has entered a definitive agreement to purchase Avidity Biosciences Inc. (RNA) for approximately $12 billion, a premium of 46% over Avidity’s most recent closing price. The acquisition, pricing shares at $72 each, marks one of Novartis’ largest deals in over a decade and signals an expanded commitment to high-impact rare disease treatments.​

Strategic Rationale: Advancing RNA Therapeutics

At the heart of the transaction is Avidity’s proprietary antibody oligonucleotide conjugate (AOC) platform. This technology enables precise delivery of RNA therapeutics directly to muscle cells, targeting debilitating neuromuscular conditions such as myotonic dystrophy type 1, facioscapulohumeral muscular dystrophy, and Duchenne muscular dystrophy—diseases with substantial unmet medical needs.​

Deal Structure and Future Prospects

As part of the agreement, Avidity will spin off its precision cardiology programs into a new entity, Spinco, allowing both companies a focused platform for innovation. The acquisition is set to close in the first half of 2026, subject to regulatory approvals. Novartis anticipates that integrating Avidity will accelerate launches of new therapeutics and strengthen its neuroscience franchise.​

Market Impact and Shareholder Response

Novartis shares moved on news of the acquisition, which analysts believe will bolster the company’s rare disease pipeline and growth outlook. Shareholders of Avidity will receive $72 per share in cash following deal closure, reflecting investor confidence in the combined entity’s long-term value.​

Industry Context: Building a Rare Disease Franchise

Novartis’ $12 billion outlay is part of an active year of strategic investments in biotechnology—further cementing the company’s commitment to pioneering precision medicine and addressing underserved patient populations with transformative therapies. The Avidity acquisition is expected to drive innovation in genetic and neuromuscular therapeutics, positioning Novartis as a leader in the rare disease market.

The Sources…

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