Swiss pharmaceutical giant Novartis has agreed to acquire U.S.-based Avidity Biosciences in a $12 billion all-cash deal, strengthening its late-stage neuroscience pipeline and expanding its presence in RNA-based therapeutics.
Strategic Expansion into RNA Therapeutics
On 26 October 2025, Novartis AG announced it had entered into a definitive agreement to acquire Avidity Biosciences, a California-based biotech company pioneering Antibody Oligonucleotide Conjugates (AOCs™). The deal, valued at approximately $12 billion in cash, has been unanimously approved by the boards of both companies and is expected to close in the first half of 2026, subject to customary regulatory approvals.
Avidity’s AOC platform enables targeted delivery of RNA therapies to muscle tissue, offering potential treatments for genetic neuromuscular diseases such as muscular dystrophies. The acquisition will add three late-stage clinical programmes to Novartis’s pipeline, significantly bolstering its neuroscience and rare disease portfolio.
Financial and Market Impact
Under the terms of the agreement, Novartis will pay $72 per share in cash for all outstanding Avidity stock. The transaction is expected to raise Novartis’s projected compound annual sales growth (CAGR) for 2024–2029 from 5% to 6%, reflecting the commercial potential of Avidity’s therapies.
Analysts estimate the deal could unlock multi-billion-dollar opportunities, with the first product launches anticipated before 2030.
Spin-Off of Early-Stage Assets
As part of the transaction, Avidity will spin off its early-stage precision cardiology programmes into a separate entity, provisionally named SpinCo, which will operate independently. This allows Novartis to focus on the more advanced neuromuscular pipeline while preserving Avidity’s exploratory research in other therapeutic areas.
Industry Significance
The acquisition is one of the largest ever in the RNA medicine field, underscoring Novartis’s commitment to expanding beyond traditional pharmaceuticals into next-generation genetic therapies. It also reflects a broader industry trend, with major pharmaceutical companies investing heavily in RNA platforms following the success of mRNA vaccines and therapies.
Outlook
Novartis CEO Vas Narasimhan described the acquisition as a “transformational step” in advancing treatments for patients with rare and debilitating neuromuscular conditions. For Avidity, the deal provides the financial and commercial backing needed to accelerate late-stage development and global distribution.
If approved, the acquisition will position Novartis as a leading player in RNA-based therapeutics, with the potential to reshape treatment options for thousands of patients worldwide.
Sources:
- Novartis – Official Press Release Novartis
- Pharmaceutical Technology Pharmaceutical Technology
- Financier Worldwide Financier Worldwide
- PR Newswire PR Newswire
Novartis Campus – Novartis Pavillon Picture by Alexandre Prevot
