Novartis will acquire Avidity Biosciences in a $12 billion all-cash deal aimed at expanding its drug development pipeline with a new class of RNA-based therapies.
The acquisition, announced October 26, strengthens Novartis’ neuroscience portfolio with three late-stage programs targeting genetic neuromuscular disorders and adds Avidity’s Antibody Oligonucleotide Conjugates (AOCs) platform — a technology that enables targeted RNA delivery to muscle tissue. The deal is expected to close in the first half of 2026.
A central challenge in RNA therapeutics has been ensuring molecules reach their intended cellular targets. RNA drugs are prone to rapid degradation and often struggle to cross cell membranes or accumulate in muscle tissue, limiting their therapeutic impact, particularly for neuromuscular and cardiac disorders.
The company’s AOC platform links monoclonal antibodies to disease-specific oligonucleotides, allowing for highly selective delivery that can silence or modify defective genes. This capability could enable Novartis to pursue RNA drug programs for conditions that have so far lacked molecularly targeted therapies.
Avidity’s late-stage candidates include potential first-in-class treatments for myotonic dystrophy type 1 (DM1), facioscapulohumeral muscular dystrophy (FSHD), and Duchenne muscular dystrophy (DMD). All three programs are designed to address the underlying genetic mechanisms that drive muscle degeneration. If successful, they could reshape treatment approaches for these progressive, currently untreatable disorders.
“Avidity’s pioneering AOC platform for RNA therapeutics and its late-stage assets bolster our commitment to developing targeted, first-in-class medicines to treat devastating neuromuscular diseases,” said Vasant Narasimhan, CEO of Novartis, in a press release.
The acquisition also positions Novartis to accelerate development timelines for muscle-directed RNA drugs that could reach the market before 2030. The company said the deal raises its expected 2024–2029 sales growth rate from 5 percent to 6 percent, reflecting the commercial potential of Avidity’s programs. By adding Avidity’s technology to its existing expertise in spinal muscular atrophy and other genetic disorders, Novartis aims to establish an integrated pipeline spanning small molecules, biologics, and RNA therapeutics.
As part of the transaction, Avidity will spin out its early-stage precision cardiology assets into a separate company, “SpinCo,” before the merger closes. Avidity shareholders will receive $72 per share in cash — a 46 percent premium over its closing price on October 24 — and a distribution of SpinCo shares or cash proceeds from its sale. The boards of both companies have approved the deal, which remains subject to regulatory and shareholder approvals.
