Novartis to Buy Avidity Biosciences for $12 Billion to Expand RNA-Based Drug Pipeline

The Swiss drugmaker said the deal would strengthen its neuroscience business with late-stage RNA therapies for rare muscle diseases.

The company's logo at the new cell and gene therapy factory of Swiss drugmaker Novartis in Stein, Switzerland, on Nov. 28, 2019. Arnd Wiegmann/Reuters

Swiss pharmaceutical giant Novartis AG said on Oct. 26 it will acquire Avidity Biosciences Inc. for about $12 billion in cash, expanding its late-stage pipeline of RNA-based drugs for rare neuromuscular diseases.

Avidity stockholders will receive $72 per share in cash, representing a 46 percent premium to the company’s closing on Oct. 24.

Before the merger closes, Avidity will spin off its early-stage precision cardiology unit into a separate publicly traded company, SpinCo, which will be led by Kathleen Gallagher, Avidity’s current chief program officer.

Avidity CEO Sarah Boyce will serve as chair of SpinCo’s board. The acquisition gives Novartis access to Avidity’s Antibody Oligonucleotide Conjugate (AOC) technology, a new kind of RNA medicine that uses antibodies to deliver genetic treatments directly to muscle cells, reaching disease-causing genes that traditional drugs cannot.

Expanding Neuroscience Reach

Avidity’s pipeline includes three treatments for rare genetic neuromuscular diseases: myotonic dystrophy type 1 (DM1), facioscapulohumeral muscular dystrophy (FSHD), and Duchenne muscular dystrophy (DMD). These experimental therapies are designed to be first in their class and aim to slow or halt the progression of muscle deterioration.

Novartis said the addition of Avidity’s programs and delivery platform will raise its 2024–2029 sales growth forecast to six to five percent and could create “multi-billion-dollar opportunities” with expected product launches before 2030.

The move builds on Novartis’ experience in treating spinal muscular atrophy and other genetic disorders.

Novartis CEO Vas Narasimhan said he is looking forward to developing the programs that can change the trajectory of such diseases for patients.

“Avidity’s pioneering AOC platform for RNA therapeutics ​and its late-stage assets bolster our commitment to delivering innovative, targeted and potentially first-in-class medicines to treat devastating, progressive neuromuscular diseases,” Novartis CEO Vas Narasimhan said. “The Avidity team has built robust programs with industry-leading delivery of RNA therapeutics to muscle tissue.”

Avidity’s Next Chapter

Under the terms of the deal, SpinCo will start trading as a new public company.

The unit will receive $270 million in cash and continue partnerships with Bristol Myers Squibb and Eli Lilly.

SpinCo’s research will focus on rare genetic heart diseases, including phospholamban (PLN) and PRKAG2 cardiomyopathies, and further development of the AOC platform for cardiovascular applications.

“We have already seen the tremendous impact targeted delivery of RNA therapeutics to muscle can have for people living with rare diseases based on the impressive advancements Avidity has made,” Gallagher said.

Avidity shareholders will receive one SpinCo share for every 10 Avidity shares they hold or a cash distribution if SpinCo or its assets are sold before the merger closes.

Strategic Fit, Future Growth

For Novartis, the acquisition fits into its long-term plan to focus on high-value, innovative medicines, following its 2023 spinoff of the Sandoz generics unit. The company has been investing heavily in RNA-based and genetic therapies aimed at treating the underlying causes of disease.

In 2024, Novartis acquired Kate Therapeutics, a firm developing gene therapies for neuromuscular diseases. Other acquisitions this year include Anthos Therapeutics in February and Regulus Therapeutics in June.

Novartis said on April 10 that it will invest $23 billion over the next five years in a bid to boost manufacturing and research operations in the United States.

The Avidity deal’s completion depends on regulatory clearances, stockholder approval, and successful separation of SpinCo.

Both companies expect to close the transaction in the first half of 2026. Until then, Novartis and Avidity will continue operating independently.