Novartis Plans $12B Acquisition of Avidity to Boost Rare Muscle Disease Pipeline

Novartis has agreed to acquire Avidity Biosciences for approximately $12 billion in an all-cash transaction, offering Avidity shareholders $72 per share, a 46% premium over the recent stock price. The deal, expected to close in the first half of 2026 pending regulatory and shareholder approvals, aims to enhance Novartis's pipeline in precision therapies targeting rare muscle disorders. Avidity's innovative Antibody Oligonucleotide Conjugates platform enables targeted delivery of RNA therapeutics to muscle tissue, addressing diseases like myotonic dystrophy type 1, facioscapulohumeral muscular dystrophy, and Duchenne muscular dystrophy. These programs represent promising late-stage treatments for conditions currently lacking effective therapies, potentially launching before 2030. Post-merger, Avidity's early-stage cardiology projects will be spun off into a separate entity, Spinco, which is expected to go public. This acquisition supports Novartis's strategic goal to bolster its portfolio amid upcoming patent expirations on key drugs.