Avidity Biosciences, Inc. has announced its entry into a definitive merger agreement with Novartis AG, with Novartis set to acquire Avidity for approximately USD 12.0 billion. As part of the agreement, Avidity expects to separate its early-stage precision cardiology programs into a new company called "SpinCo," which is expected to be publicly traded. The closing of the acquisition is anticipated in the first half of 2026, subject to the completion of the separation of SpinCo from Avidity and other customary closing conditions.
Under the terms of the merger agreement, holders of Avidity common stock will receive USD 72.00 per share in cash at closing, representing a premium of approximately 46% over Avidity’s closing share price on October 24, 2025, and approximately 62% over Avidity’s October 24 closing 30-day volume weighted average price. This values the company at approximately USD 12.0 billion on a fully diluted basis.
Novartis will acquire Avidity’s programs and pipeline in neuroscience, including three late-stage clinical development programs for the treatment of various muscular dystrophies. Furthermore, SpinCo will focus on Avidity’s early-stage precision cardiology programs, holding rights to continue the development of Avidity’s proprietary platform for applications in the cardiology field.
In terms of leadership, SpinCo will be led by Kathleen Gallagher as its chief executive officer, while Sarah Boyce, currently Avidity’s chief executive officer, will serve as the chair of the board. The acquisition by Novartis of Avidity is subject to the completion of the separation of SpinCo and other customary closing conditions, including regulatory approvals and the approval of Avidity’s stockholders. Until closing, Novartis and Avidity will continue to operate as separate and independent companies.
Goldman Sachs & Co. LLC and Barclays Capital Inc. are serving as financial advisors to Avidity, and Kirkland & Ellis LLP as its legal advisor.
Avidity Biosciences, Inc. is focused on delivering a new class of RNA therapeutics called Antibody Oligonucleotide Conjugates (AOCs™) with the mission of profoundly improving people's lives. The company is revolutionizing the field of RNA with its proprietary AOCs, designed to combine the specificity of monoclonal antibodies with the precision of oligonucleotide therapies to address targets and diseases previously unreachable with existing RNA therapies. Today the company's shares have moved 1.24% to a price of $49.15. Check out the company's full 8-K submission here.
