Novartis Makes $12B Move for Avidity Biosciences

Novartis ($NVS) said it will acquire Avidity Biosciences ($RNA) in a $12 billion all-cash deal, valuing Avidity shares at $72 each — a 46% premium to Friday’s close.

The acquisition represents one of Novartis’s largest recent transactions and highlights its aggressive expansion into genetic and rare diseases, a segment expected to deliver long-term growth as traditional drug patents expire.

Strategic Rationale

The deal gives Novartis access to Avidity’s innovative RNA-based therapies, including:

A mid-stage candidate for a subtype of Duchenne muscular dystrophy (DMD)
A robust pipeline of precision RNA therapeutics targeting muscle and cardiac disorders

To streamline focus, Avidity’s early-stage precision cardiology assets will be spun out into a new publicly traded company, to be known as Spinco.

Strengthening Novartis’s Rare Disease Platform

Novartis said the acquisition aligns with its broader strategy to diversify revenue streams and reinforce its leadership in neuromuscular and gene-targeted medicines.
The company is preparing for key patent expirations across several blockbuster therapies and is increasingly investing in high-value specialized medicine.

Market Reaction

Avidity Biosciences ($RNA) shares surged 42% on the announcement.
Novartis ($NVS) stock traded modestly higher, as investors welcomed the strategic expansion in RNA therapeutics.

Analysts say the acquisition positions Novartis as a leading player in the next generation of RNA drug development.