Swiss drugmaker Novartis AG said late on Sunday that it has agreed to acquire U.S. biotech firm Avidity Biosciences, Inc. in an all-cash transaction valued at about US$12 billion.
The deal, announced on October 26, 2025, is designed to bolster Novartis’s pipeline in rare neuromuscular disorders and positions the company for growth amid looming patent expirations on some of its key products.
Under the terms of the agreement, Avidity shareholders will receive US$72.00 per share in cash, representing a premium of roughly 46 % to the biotech’s closing share price on October 24.
The boards of both companies have unanimously approved the transaction.
Completion of the deal is subject to regulatory approval and customary closing conditions, with the companies expecting the acquisition to close in the first half of 2026.
Avidity, based in San Diego, California, develops next-generation RNA therapeutics using an antibody-oligonucleotide conjugate (AOC™) platform engineered to deliver gene-modulating payloads directly to muscle tissue.
Its lead programmes include candidates targeting debilitating genetic neuromuscular disorders such as Duchenne muscular dystrophy (DMD), Myotonic dystrophy type 1 (DM1), and Facioscapulohumeral muscular dystrophy (FSHD), offering what Novartis describes as potential “first-in-disease” treatments.
In its announcement, Novartis noted that the acquisition will raise its expected compound annual growth rate (CAGR) for 2024–2029 from around 5 % to about 6 %.
As part of the transaction structure, Avidity will spin off its early-stage precision cardiology programmes into a newly formed publicly-traded entity, referred to as “SpinCo”.
Shareholders of Avidity will receive one share of SpinCo for every ten Avidity shares held, or a cash distribution if certain assets are sold before closing. Novartis will not acquire the SpinCo unit.
For Novartis, the deal represents one of its most significant acquisitions in recent years, reflecting an aggressive push into rare disease and RNA-targeted therapies as the company braces for patent cliff pressures on blockbuster medicines like Entresto (for heart failure) and Cosentyx (for autoimmune conditions).
With the addition of Avidity’s advanced neuromuscular assets, Novartis aims to build a deeper franchise in genetically defined, high-unmet-need diseases — an area where treatment options have historically been limited.
Industry analysts note the deal underscores the broader trend of large pharmaceutical companies acquiring innovative biotech firms to replenish pipelines and access novel modalities such as RNA delivery beyond the liver and into hard-to-reach tissues like muscle.
Avidity’s AOC platform is considered differentiating in that respect.
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