Novartis Makes $12B Acquisition of Avidity Biosciences, Bolstering Neuromuscular Pipeline

Novartis has announced a major acquisition deal, agreeing to purchase Avidity Biosciences for approximately $12 billion. The transaction, which is expected to close in the first half of 2026, marks a significant investment in RNA-based therapies for neuromuscular diseases and represents one of the largest pharmaceutical deals of the year.

Deal Structure and Financial Details

Under the terms of the agreement, Novartis will pay $72 per share for Avidity, representing a 46% premium over the biotech's closing price of $49.15 on Friday. This values the San Diego-based company at $12 billion, making it the second-largest pharmaceutical acquisition of 2025, trailing only Johnson & Johnson's $14.6 billion buyout of Intra-Cellular Therapies in January.

The deal structure includes a spin-off of Avidity's early-stage cardiovascular programs into a new, publicly-traded company. Avidity stockholders will receive one share in this new entity for every ten Avidity shares they own, or a proportional cash payment if certain assets or the entire company are sold to a third party.

Strategic Rationale and Pipeline Expansion

Novartis CEO Vas Narasimhan emphasized the strategic importance of the acquisition, stating, "Avidity's pioneering AOC platform for RNA therapeutics and its late-stage assets bolster our commitment to delivering innovative, targeted and potentially first-in-class medicines to treat devastating, progressive neuromuscular diseases."

The Swiss pharmaceutical giant will gain access to Avidity's neuroscience assets, including several late-stage RNA programs targeting conditions such as Duchenne muscular dystrophy (DMD), facioscapulohumeral muscular dystrophy (FSHD), and myotonic dystrophy type 1 (DM1). Notably, Avidity recently announced a positive outcome from a pre-biologics license application meeting with the FDA for its lead DMD candidate, del-zota, with a submission planned for the first quarter of 2026.

Novartis projects that this acquisition will "unlock multi-billion-dollar opportunities" with planned product launches before 2030. The company aims to leverage its existing sales expertise in neuromuscular diseases, building on its portfolio that includes a gene therapy for spinal muscular atrophy and prospects for myotonic dystrophy and facioscapulohumeral muscular dystrophy acquired through its purchase of Kate Therapeutics last year.

Industry Impact and Future Outlook

This acquisition reflects a broader trend of increased dealmaking activity in the biotech sector, with October seeing eight acquisitions with at least $50 million in upfront cash—the highest monthly total in several years. The deal also underscores the growing interest in RNA-based therapies and their potential to address previously untreatable neuromuscular conditions.

As the pharmaceutical industry continues to evolve, the successful integration of Avidity's innovative AOC platform and late-stage pipeline assets could position Novartis as a leader in the development of targeted therapies for neuromuscular diseases. The completion of this transaction in 2026 will likely be closely watched by industry observers as a barometer for future large-scale acquisitions in the biotechnology sector.