Novartis to Acquire Avidity in $12 Billion Deal

Rare Daily Staff

Novartis said it agreed to buy Avidity Biosciences for $12 billion following the spin-out of Avidity’s early-stage precision cardiology programs into a separate company.

Avidity Biosciences is developing antibody oligonucleotide conjugates, a new class of RNA therapeutics. These AOCs are designed to combine the specificity of monoclonal antibodies with the precision of oligonucleotide therapies to address targets and diseases previously unreachable with existing RNA therapies.

“Avidity has expanded the possibilities of what RNA therapeutics can deliver to patients by advancing innovative science and creating an organization with a strong commitment to providing access to our potential medicines,” said Sarah Boyce, president and CEO of Avidity. “We are confident that this transaction with Novartis maximizes value for our investors and will support the global expansion of our neuroscience pipeline.”

Under the terms of the agreement, holders of Avidity common stock will receive $72.00 per share in cash at closing, representing a premium of approximately 46 percent over Avidity’s closing share price on Oct. 24, 2025, and approximately 62 percent over Avidity’s 30-day volume-weighted average price as of Oct. 24. Avidity stockholders will also receive consideration for the separation of the spinout company.

Kathleen Gallagher, currently Avidity’s chief program officer, will serve as CEO of the spinout, and Boyce will serve as chair of the board. The new company is expected to be publicly traded and capitalized with $270 million in cash.

Novartis will acquire Avidity’s programs and pipeline in neuroscience and gain access to its differentiated RNA-targeting delivery platform. The agreement includes three late-stage clinical development programs: delpacibart zotadirsen (del-zota) for the treatment of Duchenne muscular dystrophy (DMD); delpacibart etedesiran (del-desiran) for the treatment of myotonic dystrophy type 1 (DM1); and delpacibart braxlosiran (del-brax) for the treatment of facioscapulohumeral muscular dystrophy (FSHD).

The spinout will focus on Avidity’s early-stage programs in precision cardiology. Key programs include AOC 1086 and AOC 1072, which target rare genetic cardiomyopathies, including phospholamban (PLN) and protein kinase AMP-activated noncatalytic subunit gamma 2 (PRKAG2) syndrome. The new company will also include collaborations with Bristol Myers Squibb and Eli Lilly and hold rights to continue developing Avidity’s proprietary platform, including next-generation technology improvements, for cardiology applications.

The acquisition of Avidity by Novartis is subject to the completion of the spinout and other customary closing conditions, including regulatory approvals and approval by Avidity’s stockholders.

“We have already seen the tremendous impact targeted delivery of RNA therapeutics to muscle can have for people living with rare diseases based on the impressive advancements Avidity has made with its neuroscience programs,” Gallagher said. “Avidity’s precision cardiology pipeline is poised to progress rapidly, and I am excited to lead the team that will build on our groundbreaking AOC platform with the potential to address high unmet need in cardiovascular diseases.”

Photo: Sarah Boyce, CEO of Avidity Biosciences