Novartis to Acquire Avidity Biosciences in $12 Billion Deal

Novartis AG (SWX: NOVN) has agreed to acquire clinical-stage biotech Avidity Biosciences Inc (Nasdaq: RNA) for $12 billion in a significant deal that marks a 46% premium to Avidity's closing share price on October 24, 2025, and a 62% premium to its 30-day volume-weighted average price. Avidity's RNA therapeutics aim to address rare muscle diseases, with its lead candidate, del-desiran, currently in Phase 3 trials for DM1. The acquisition also includes Avidity's early-stage precision cardiology assets, which will be transferred to a new subsidiary, SpinCo. Avidity was RTW Bio's third-largest holding, accounting for 7.0% of net asset value as of September 30, 2025.

Key Takeaways:

• Novartis to acquire Avidity Biosciences for $12 billion in a deal valuing Avidity at approximately $12 billion on a fully diluted basis.
• The offer represents a 46% premium to Avidity's closing share price on October 24, 2025, and a 62% premium to its 30-day volume-weighted average price.
• Avidity's lead candidate, del-desiran, is in Phase 3 trials for DM1, aiming to address rare muscle diseases.
• The acquisition includes Avidity's early-stage precision cardiology assets, which will be transferred to a new subsidiary, SpinCo.
• Shareholders will receive one SpinCo share for every ten Avidity shares held, or a pro rata cash distribution if SpinCo or its assets are sold.
• SpinCo is expected to trade as an independent public company following the spin-off.

Statistics:

• April 24, 2025, Avidity's closing share price: $72
• Avidity's 30-day volume-weighted average price: $43.8
• Avidity's fully diluted market capitalization: approximately $12 billion
• Percentage of RTW Bio's net asset value (as of September 30, 2025): 7.0%

Sources:

• M2 EQUITYBITES-October 27, 2025-Novartis to acquire Avidity Biosciences in $12bn deal (C)2025 M2 COMMUNICATIONS http://www.m2.co.uk