Novartis to Acquire Biotech Startup Avidity Biosciences in $12 Billion Deal
- ByStartupStory | October 28, 2025
Swiss pharmaceutical giant Novartis AG announced it has entered into a definitive agreement to acquire San Diego-based biotech company Avidity Biosciences for approximately $12 billion in an all-cash transaction. The deal marks one of the largest biotech acquisitions in recent years and highlights Novartis’ strategic commitment to expanding its portfolio in RNA therapeutics targeting neuromuscular diseases.
Strengthening the Neuroscience Pipeline with RNA Therapeutics
Avidity Biosciences specializes in pioneering RNA medicines using an innovative platform of Antibody Oligonucleotide Conjugates (AOCs™), which combines monoclonal antibodies with oligonucleotides to deliver RNA therapies directly to muscle tissue. This approach holds promise for treating serious, progressive neuromuscular disorders such as Duchenne Muscular Dystrophy (DMD), Myotonic Dystrophy Type 1 (DM1), and Facioscapulohumeral Muscular Dystrophy (FSHD).
Novartis, already a leader in neuroscience with multiple multiple sclerosis therapies, views this acquisition as an opportunity to significantly enhance its late-stage clinical pipeline, bringing potential first-in-class therapeutics to patients with high unmet medical needs.
Deal Terms and Valuation
Novartis agreed to pay $72 per share, representing a 46% premium over Avidity’s closing stock price of $49.15 on the Friday before the agreement was announced. The $12 billion valuation places this transaction as the second-largest pharma deal of the year, just behind Johnson & Johnson’s $14.6 billion acquisition of Intra-Cellular Therapies.
This all-cash deal is expected to close in the first half of 2026, pending regulatory approvals and customary closing conditions.
Broader Strategic Context
This acquisition complements Novartis’ November 2024 purchase of Kate Therapeutics, a gene and RNA therapy-focused biotech, and is part of a broader strategy to bolster innovation in rare diseases. By integrating Avidity’s technology with its own resources, Novartis aims to accelerate the development and commercialization of novel therapies beyond traditional small molecule and biologics.
Avidity’s early-stage cardiovascular programs will be spun out into a separate company, led by existing Avidity executives, allowing Novartis to focus exclusively on the neuromuscular disease assets.
Industry and Market Reception
Following the announcement, Avidity’s stock surged 43% in premarket U.S. trading, while Novartis shares experienced a modest decline, reflecting market caution on large acquisitions. Analysts note that while Novartis is taking on considerable financial risk, the potential to lead in the $10 billion-plus neuromuscular disease market offers significant upside.
Experts also emphasize the importance of regulatory clarity, clinical trial success, and integration execution in determining the long-term value of this acquisition.
Novartis CEO Comments
Vas Narasimhan, CEO of Novartis, stated, “Avidity’s groundbreaking AOC platform and robust late-stage programs strengthen our commitment to delivering targeted, potentially first-in-class medicines for devastating neuromuscular diseases. Together, we look forward to advancing these programs and changing the trajectory for patients worldwide.”
Conclusion
The acquisition of Avidity Biosciences marks a bold step by Novartis to cement its role as a leader in RNA therapeutics and neuromuscular disease treatment. As this high-value merger moves towards completion, industry watchers will be keenly observing Novartis’ ability to integrate this innovative pipeline and accelerate breakthrough treatments for rare and debilitating conditions.
Follow Startup Story
Related Posts
