Novartis to Buy Avidity Biosciences in $12B RNA Bet

Terms, timing, and strategic aim

Novartis said it will acquire Avidity Biosciences for about $12 billion in cash. The all-cash offer is $72 per share, which represents a 46 percent premium to Avidity’s last close before the announcement. Boards of both companies approved the transaction. The companies guided to closing in the first half of 2026, subject to customary approvals and the tender of a majority of Avidity shares. The Novartis to Buy Avidity Biosciences in $12B RNA Bet headline captures the scale and focus of the move.

What Novartis is buying

Avidity brings a late-stage portfolio built on targeted RNA delivery to muscle tissue, positioning Novartis to expand in genetically defined neuromuscular diseases. Management said the acquisition strengthens its neuroscience pipeline and supports mid-to-late decade growth ambitions. Sell-side commentary and company materials frame the deal as consistent with Novartis’s focus on innovative therapies that can deliver durable sales beyond looming patent expirations.

Carve-out of early cardiology programs

As part of the agreement, Avidity’s early-stage precision cardiology programs will be separated into a new, publicly traded entity before close. The carve-out, described in the companies’ announcements, ring-fences higher-risk discovery work from the core neuromuscular assets that Novartis seeks. The separation is intended to preserve investor exposure to those earlier programs while giving Novartis a cleaner neuromuscular package.

Price context and market reaction

At $72 per share, Novartis is paying a premium that reflects competition for late-stage rare-disease assets and the scarcity of clinically validated RNA delivery platforms. Shares of Avidity surged on the news, while Novartis stock eased modestly in early trading as investors absorbed the cash outlay and regulatory timeline. The price equates to a 46 percent uplift versus Avidity’s prior close at $49.15.

Industrial logic: RNA to muscle and neuromuscular focus

Avidity’s platform aims to deliver RNA payloads specifically to muscle, a capability that could address multiple neuromuscular conditions. For Novartis, which has highlighted neuroscience and rare diseases as pillars, the acquisition adds breadth and optionality across indications where targeted genetic medicines can command premium pricing if efficacy and safety are competitive. Analysts argue the fit is straightforward: a late-stage RNA engine plus commercial scale can shorten the path from registrational data to launch.

Approvals, financing, and integration

The parties expect the transaction to close following antitrust and CFIUS reviews, standard tender offer conditions, and approval of the Spinco separation. Novartis indicated it will fund the purchase with cash on hand and short-term financing if needed, consistent with recent balance-sheet communication around disciplined M&A. Integration will slot Avidity’s neuromuscular programs into Novartis’s neuroscience unit, with governance designed to keep late-stage trials on track during handover.

Competitive landscape and pipeline overlap

Large pharmas have stepped up bids for genetic medicine assets, a trend visible in recent RNA and gene-therapy transactions. Novartis faces peers with overlapping ambitions in neuromuscular and rare diseases, but the combination of targeted delivery and late-stage readiness can create a defensible position. The company has also been active in partnering and bolt-ons that surround its core franchises, suggesting that execution will include selective licensing as well as internal development.

What investors will track next

Three signposts matter. First, regulatory milestones: early feedback from antitrust agencies and any conditions attached to the Spinco carve-out. Second, clinical cadence: clarity on pivotal trial timelines, readouts, and manufacturing scale-up for Avidity’s lead neuromuscular programs. Third, earnings translation: how Novartis frames revenue contribution, peak-sales potential, and near-term dilution or accretion. Street models will test whether the $12 billion price tag aligns with risk-adjusted value.

Broader implications for RNA medicines

If successful, the acquisition reinforces the case that targeted RNA delivery platforms have matured into scale assets that strategic buyers will pay for. It also shows that buyers are comfortable with carve-outs to manage risk around earlier discovery lines. That template could shape future deals in muscle, cardio-metabolic, and neurodegeneration, especially where delivery is the key unlock.

Read-through for biotech and large-cap pharma

For biotech, a premium takeout at this stage signals that late-stage platform assets can clear valuation hurdles even in a selective M&A market. For large-cap pharma, the Novartis to Buy Avidity in $12B RNA Bet underlines that targeted genetic medicines remain central to replacing revenue at risk from patent cliffs. The next wave of transactions may cluster around delivery technologies with human proof-of-concept and a clear manufacturing path.