In a move poised to shake up the RNA therapeutics landscape, Novartis AG has struck a deal to acquire Avidity Biosciences Inc. for approximately USD 12 billion, including a cash price of $72.00 per share. Concurrently Avidity announced spin-off of its early-stage precision cardiology business into a new publicly traded “SpinCo”
RNA delivery meets big pharma scale
Avidity has built its reputation around its proprietary Antibody Oligonucleotide Conjugate (AOC™) platform. The approach combines the targeting precision of monoclonal antibodies with the specificity of oligonucleotides, enabling delivery of RNA-based therapies to tissues previously considered challenging. With three clinical-stage programs for rare muscle diseases Duchenne muscular dystrophy (DMD), myotonic dystrophy type 1 (DM1) and facioscapulohumeral muscular dystrophy (FSHD), the deal gives Novartis immediate access to a differentiated RNA delivery engine and a rare-disease pipeline.
Novartis gains control of Avidity’s late-stage neurological and muscle disease assets, and benefits from the upside of a platform that may be leveraged into cardiovascular and immunology indications. For Avidity, the acquisition represents a “home run” exit and opens up global commercial reach for its novel therapies. Avidity’s CEO described it as a move that “maximises value for our investors and will support the global expansion of our neuroscience pipeline.
Spin-off creates streamlined focus
As part of the agreement, Avidity will transfer its early-stage precision cardiology programs including AOC-1086 targeting phospholamban (PLN) and AOC-1072 targeting the PRKAG2 syndrome into a new independent company (SpinCo). SpinCo, led by Avidity’s chief program officer, will begin trading publicly and be capitalised with around $270 million in cash.
The spin-off serves two purposes: it allows Novartis to acquire the more advanced neuromuscular and neuroscience assets immediately, and it gives Avidity’s cardiology business room to grow independently without being overshadowed by a large acquirer’s global priorities. By bifurcating the two portfolios, stakeholders believe they can unlock greater value from both parts of the business.
The deal values Avidity at roughly $12 billion fully diluted. That translates to a premium of ~46% over Avidity’s October 24, 2025 closing share price of $49.15, and ~62% over the 30-day volume-weighted average price of $44.42.
Such a premium signals Novartis’ confidence not only in Avidity’s pipeline but also in the broader potential for RNA-based therapies delivered to muscle and beyond. For investors in Avidity, the takeover provides immediate value. For Novartis, the move underscores the company’s ambition to lead in next-generation modalities.
Platform potential: beyond rare muscle disease
Avidity’s pipeline overview highlights its ambitions. The company states it is “advancing and expanding our innovative AOC pipeline to offer treatment options for patients across a wide range of therapeutic areas.” While its current clinical focus is on rare neuromuscular diseases (DMD, DM1, FSHD), the pipeline also includes additional DMD programs, rare neuromuscular programs and precision cardiology initiatives. Collaborations and partnerships are aimed at immunology and beyond
For Novartis, acquiring this platform is tantamount to buying a delivery engine that bridges two major therapeutic frontiers: RNA-based medicines and directed delivery via antibodies. Many RNA therapies have struggled with delivery to tissues outside the liver; AOC technology offers a path to skeletal muscle and potentially heart tissue and inflammatory sites. That could make the AOC platform a future growth driver if clinical data supports it.
This acquisition becomes one of the largest deals in the rare-disease/RNA therapy space for 2025. It signals that big pharma is willing to pay >$10 billion for platforms that may enable next-generation treatment modalities. The “billion” figure rings loud in an industry preferring clear metrics of scale. For RNA companies and delivery specialists, this deal may act as a benchmark for others seeking exits or partnerships.
It also underscores the competitive intensity in RNA and oligonucleotide therapies. While the liver has been the dominant target for RNA delivery (siRNA, antisense), muscle and heart are harder to reach but also represent huge unmet markets. The fact that Novartis is acquiring rather than building suggests that the internal burden to develop such delivery tech remains high, and acquisition remains a preferred route for big-ticket bets.