Novartis AG (NVS,NOVN.SW) announced that it has entered into a definitive agreement to acquire Avidity Biosciences Inc. (RNA) for $72.00 per share in cash, valuing the company at approximately $12.0 billion on a fully diluted basis. The transaction, unanimously approved by both companies' boards of directors, represents a 46% premium over Avidity's October 24, 2025 closing price and a 62% premium over its 30-day volume-weighted average price.
As part of the deal, Avidity will separate its early-stage precision cardiology programs into a new publicly traded entity called SpinCo. SpinCo will be led by Kathleen Gallagher, Avidity's current chief program officer, as CEO, with Sarah Boyce, Avidity's current CEO, serving as chair of the board. SpinCo will be capitalized with $270 million in cash and will retain rights to Avidity's proprietary RNA platform for cardiology applications, including collaborations with Bristol Myers Squibb and Eli Lilly.
Novartis will acquire Avidity's neuroscience pipeline and its differentiated RNA-targeting delivery platform. This includes three late-stage clinical programs: delpacibart zotadirsen (del-zota) for Duchenne muscular dystrophy (DMD), delpacibart etedesiran (del-desiran) for myotonic dystrophy type 1 (DM1), and delpacibart braxlosiran (del-brax) for facioscapulohumeral muscular dystrophy (FSHD).
Prior to closing, Avidity shareholders will receive one share of SpinCo for every ten shares of Avidity held, and/or a pro rata cash distribution if SpinCo or its assets are sold. The acquisition is expected to close in the first half of 2026, subject to regulatory approvals, shareholder consent, and completion of the SpinCo separation. Until then, Novartis and Avidity will continue to operate independently.
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