Novartis has entered into a definitive merger agreement to acquire Avidity Biosciences, Inc. for approximately $12.0 billion in cash, valuing the company at $72.00 per share—a 46% premium over Avidity’s closing share price of $49.15 on Friday, Oct. 24, 2025.
The transaction will see Novartis acquire all outstanding shares of Avidity and spin off Avidity’s early‑stage precision cardiology programs into a new public company, SpinCo. Avidity shareholders will receive one share of SpinCo for every ten Avidity shares held. SpinCo will be capitalized with $270 million in cash and led by Kathleen Gallagher, Avidity’s chief program officer, as CEO. SpinCo will focus on early‑stage programs such as AOC 1086 and AOC 1072 targeting rare genetic cardiomyopathies.
The acquisition brings Avidity’s late‑stage neuroscience pipeline—delpacibart zotadirsen (del‑zota) for Duchenne muscular dystrophy, delpacibart etedesiran (del‑desiran) for myotonic dystrophy type 1, and delpacibart braxlosiran (del‑brax) for facioscapulohumeral muscular dystrophy—into Novartis’s portfolio, providing access to its proprietary Antibody Oligonucleotide Conjugate (AOC) platform.
Novartis said the deal will lift its 2024‑2029 sales compound annual growth rate from 5% to 6%, underscoring the strategic value of the AOC technology and the potential for accelerated commercialization of Avidity’s therapies.
Avidity’s market capitalization was approximately $7.06 billion before the announcement. Analysts at BMO Capital Markets had previously projected peak sales of $420 million for del‑zota, $4.3 billion for del‑desiran, and $3.2 billion for del‑brax. The acquisition aligns with Novartis’s long‑term neuroscience strategy and its commitment to delivering innovative, targeted therapies for neuromuscular diseases.
Avidity recently secured a positive outcome from a pre‑BLA meeting with the FDA for del‑zota, with a submission planned for Q1 2026, and completed enrollment for the Phase 3 HARBOR trial for del‑desiran in DM1.
The transaction is expected to close in the first half of 2026, subject to customary regulatory approvals and shareholder approval.
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