Novartis Makes Major Biotech Move

Novartis ($NVS) announced plans to acquire Avidity Biosciences ($RNA) for approximately $12 billion in cash, marking one of the largest biotech acquisitions of 2025.

Under the terms of the deal, Avidity shareholders will receive $72 per share, representing a 46% premium over Friday’s closing price.

Strategic Rationale

The acquisition strengthens Novartis’s genetic and RNA medicine portfolio, enhancing its capabilities in rare muscle disorders and precision therapies.
The transaction comes as Novartis continues to diversify its drug pipeline and offset upcoming patent expirations on several major products.

Market Reaction

Avidity Biosciences ($RNA) stock soared nearly 44% following the announcement.
Novartis ($NVS) shares slipped 1.3% as investors digested the acquisition cost and integration outlook.

Analysts called the deal a strategic fit that positions Novartis as a leader in next-generation RNA therapeutics.

Deal Details and Next Steps

The transaction, subject to regulatory and shareholder approvals, is expected to close in 2025.
Following completion, Novartis will integrate Avidity’s RNA-based therapy programs into its rare disease division, expanding its research footprint in muscle and genetic medicine.