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Novartis is making moves to strengthen its neuroscience franchise by acquiring Avidity Biosciences.
The Swiss company, which has its U.S. headquarters in East Hanover, announced the planned purchase Oct. 26. According to the announcement, the global pharmaceutical and biotechnology company will pay approximately $12 billion for the target.
A San Diego-based biopharma, Avidity’s work focuses on delivering a new class of RNA therapeutics called Antibody Oligonucleotide Conjugates. These AOS target serious, genetic neuromuscular diseases, Novartis explained. The acquisition will follow the separation of Avidity’s early-stage precision cardiology programs. Reuters reported Avidity has a market cap of nearly $6.7 billion.
Big buy
Bringing these late-stage neuroscience programs into the fold will open access to a differentiated RNA-targeting delivery platform, the buyer said. Beyond advancing its neuroscience channel, Novartis added it expects the programs to complement its current pipeline overall. The potential first-in-class therapeutics address the genetic drivers of muscle-damaging conditions, the company noted.
The deal raises Novartis’ expected compound annual growth rate from +5% to +6% for sales from 2024–2025. The company notes this represents a significant opportunity to deliver “substantial” shareholder returns over time.
“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,” commented Vas Narasimhan, CEO of Novartis.
Endpoints News noted Avidity is “months away” from seeking U.S. Food and Drug Administration approval for its lead treatment candidate. Additionally, that report notes the deal is the second-largest biotech transaction announced in 2025. The first also has New Jersey ties: Johnson & Johnson’s $14.6 billion play for Intra-Cellular Therapies.
ABCs on AOC
The Antibody Oligonucleotide Conjugates platform combines combines the tissue specificity of monoclonal antibodies with the precision of oligonucleotides, enabling targeted delivery to previously hard-to-reach muscle cells.
AOCs carry disease-specific, oligonucleotide payloads that aim to correct underlying genetic mechanisms and enable targeted, disease-modifying therapies.
The move aligns with the company’s long-term strategy around neuroscience with potential near-term launches in genetically defined diseases with high unmet need.
Novartis said Avidity’s work aims to address root genetic causes, restore muscle function and potentially slow disease progression.
According to Novartis, Avidity programs feature potential first-in-class, late-stage disease-modifying therapies targeting:
- Delpacibart etedesiran to treat myotonic dystrophy type 1 (DM1) – a rare progressive neuromuscular disorder with a poor prognosis and no disease-modifying therapies;
- Delpacibart braxlosiran to treat facioscapulohumeral muscular dystrophy (FSHD) – a rare hereditary disorder causing relentless loss of muscle function and progressive disability; and
- Delpacibart zotadirsen to treat Duchenne muscular dystrophy (DMD) – a severe, early-onset disease marked by progressive muscle damage and reduced life expectancy.
The acquisition builds on Novartis’ expertise in spinal muscular atrophy and commercialization capabilities in genetic neuromuscular diseases.
“Avidity has expanded the possibilities of what RNA therapeutics can deliver to patients by advancing innovative science and creating an organization with a strong commitment to providing access to our potential medicines. We are confident that this transaction with Novartis maximizes value for our investors and will support the global expansion of our neuroscience pipeline,” said Sarah Boyce, president and CEO, Avidity.
Spinning out
The boards of directors of both companies have unanimously approved the transaction. Under the deal, Novartis will acquire all outstanding shares of Avidity through a merger with a newly formed indirect wholly owned subsidiary.
Under the agreement, Avidity common stock holders will receive $72 per share in case at closing. The figure represents a premium of 46%, Novartis said, to the Oct. 24, 2025, closing price.
Avidity’s cardiology programs and collaborations will transfer to wholly owned subsidiary SpinCo prior to closing, Novartis said. The transfer includes certain Avidity assets whose transfer will trigger a right of first negotiation with an existing collaboration partner of Avidity.
Novartis noted its acquisition is subject to Avidity completing the spinoff or sale of Spinco, as well as other customary closing conditions.
In its Oct. 26 announcement of the combination, the target said it expects SpinCo to operate as a publicly traded company.
The parties expect to close their merger in the first half of 2026.
Novartis did not disclose its advisors. Avidity said Goldman Sachs & Co. LLC and Barclays Capital Inc. serve as its financial advisors in the deal. Meanwhile, Kirkland & Ellis LLP operates as its legal advisor.
The deal comes as Novartis commits to domestic investments in the U.S. Amid talk of tariffs, in April the company said it would spend $23 million over the next five years to expand here. It also follows other major plays, including an up to $1.7 billion deal to acquire Regulus, as well as restructuring (and job cuts) that aim to drive growth and performance.
