TLDR
- Novartis agreed to buy Avidity Biosciences for $12 billion in cash at $72 per share, a 46.5% premium over Friday’s closing price
- The deal gives Novartis access to three late-stage RNA treatments for neuromuscular diseases using Antibody Oligonucleotide Conjugate technology
- Avidity stock jumped over 40% on Monday following the announcement
- Dyne Therapeutics shares also surged 40% as analysts view the deal positively for the competing RNA therapy developer
- The transaction is expected to close in the first half of 2026 and could boost Novartis sales growth to 6% annually
Novartis announced plans to acquire Avidity Biosciences in an all-cash deal worth approximately $12 billion. The Swiss drugmaker will pay $72 per share for the U.S. biopharmaceutical company.
The purchase price represents a 46.5% premium over Avidity’s closing price on Friday. Avidity stock rose more than 40% in midday trading on Monday following the announcement.
The acquisition centers on Avidity’s RNA-based therapies for neuromuscular diseases. Novartis will gain access to three late-stage experimental treatments that use technology called Antibody Oligonucleotide Conjugates, or AOC.
Avidity Biosciences, Inc., RNA
These treatments target serious genetic neuromuscular diseases. The AOC platform delivers RNA therapeutics directly to affected muscles.
Before the deal closes, Avidity will spin off its early stage precision cardiology programs into a separate company. This allows Novartis to focus on the neuromuscular disease treatments.
Novartis Expands RNA Portfolio
Novartis CEO Vas Narasimhan said the AOC platform and late-stage assets will help the company deliver innovative medicines for devastating neuromuscular diseases. The company aims to provide first-in-class treatments for these conditions.
Novartis expects the transaction to close in the first half of 2026. The drugmaker believes the purchase will increase its sales compound annual growth rate from 5% to 6% for the period spanning 2024 to 2029.
Avidity shares have climbed 140% since the start of 2025. Novartis U.S.-listed shares gained about one-third of their value year-to-date but fell 1% on Monday.
Dyne Therapeutics Benefits from Deal
Dyne Therapeutics stock also jumped more than 40% on Monday. Analysts at Jefferies said the company stands to benefit from Novartis acquiring Avidity.
Both Avidity and Dyne develop RNA therapies for rare muscle diseases. They focus on myotonic dystrophy type 1, Duchenne muscular dystrophy, and facioscapulohumeral muscular dystrophy.
Dyne uses its FORCE platform to develop therapeutics that target the root cause of neuromuscular disorders. The platform aims to deliver functional improvements for people with these conditions.
Morgan Stanley maintains an Overweight rating on Dyne shares with a $48 price target. This target suggests a potential 180% increase from Dyne’s Friday closing price.
The acquisition demonstrates growing pharmaceutical industry interest in RNA therapeutics. Both companies focus on targeted delivery of RNA into muscle tissue.
Morgan Stanley analysts view the Novartis deal as providing positive implications for Dyne. The validation of RNA therapy approaches for neuromuscular diseases supports Dyne’s development strategy.
Dyne shares moved back into positive territory for 2025 following Monday’s gains. The stock had been trading lower before the Novartis announcement.
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