Novartis Acquires Avidity Biosciences for $12 Billion in Cash Deal

TLDR

• Novartis agreed to buy Avidity Biosciences for approximately $12 billion, paying $72 per share in cash, a 46% premium over Friday’s closing price
• The acquisition adds late-stage therapies for rare neuromuscular diseases to Novartis’s pipeline, with potential drug approvals expected by 2026
• Avidity will spin off its early-stage cardiology programs into a separate publicly traded company called Spinco before the deal closes
• The deal raises Novartis’s expected sales growth rate from 5% to 6% for the 2024-2029 period
• Both company boards have already approved the transaction

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Swiss pharmaceutical company Novartis announced Sunday it will acquire San Diego-based biotech firm Avidity Biosciences in an all-cash transaction worth about $12 billion. The deal marks one of the largest biotech acquisitions of 2025.

Under the agreement, Avidity shareholders will receive $72 per share in cash. This represents a 46% premium to Avidity’s Friday closing price of $49.15.

The boards of both companies have approved the transaction. Bloomberg News first reported the deal, citing a person familiar with the matter.

Avidity Biosciences, Inc., RNA

Avidity Biosciences specializes in developing RNA therapeutics that target muscle tissue. The company has three experimental drug candidates in development for rare neuromuscular disorders.

The lead drug candidate, Del-zota, is currently in early-to-mid-stage clinical trials. It aims to treat a rare form of Duchenne muscular dystrophy.

Avidity is also working on two other drugs for serious muscle diseases. These candidates use special technology to deliver RNA therapeutics directly to muscle tissue.

The company expects to seek regulatory approval for these treatments by 2026. This timeline gives Novartis potential near-term product launches.

Pipeline Expansion for Novartis

Novartis CEO Vas Narasimhan said the Avidity team has built strong programs with industry-leading delivery of RNA therapeutics to muscle tissue. The company plans to develop these programs to change disease trajectories for patients.

The acquisition aligns with Novartis’s strategy to expand treatments for genetically defined diseases. It also addresses the company’s upcoming patent cliff for several blockbuster drugs.

These drugs include Entresto for heart failure, Xolair for asthma, and Cosentyx for autoimmune diseases. Novartis has been actively pursuing deals throughout 2025 to offset potential revenue losses.

The Avidity acquisition is expected to boost Novartis’s sales growth projections. The company raised its 2024-2029 expected compound annual growth rate to 6% from 5%.

Cardiology Spinoff Planned

Before the acquisition closes, Avidity will separate its early-stage precision cardiology programs. These programs will form a new company called Spinco.

Spinco is expected to become a publicly traded company. Kathleen Gallagher, currently Avidity’s chief program officer, will lead the new entity.

The deal also strengthens Novartis’s presence in the U.S. market. This comes as pharmaceutical companies face potential tariff threats from the Trump administration.

The Trump administration imposed 39% tariffs on Switzerland in August 2025. However, pharmaceutical companies were exempted from the initial U.S. duties.

The Avidity acquisition follows Novartis’s November 2024 purchase of Kate Therapeutics. That company also develops gene therapies for neuromuscular diseases.

Novartis completed a $3.1 billion acquisition of Anthos Therapeutics in February 2025 for cardiovascular treatments. In April, it bought Regulus Therapeutics for $1.7 billion to gain a kidney disorder therapy.

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