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Switzerland-based pharmaceutical giant Novartis announced Sunday that it has agreed to acquire U.S. biotechnology company Avidity Biosciences for approximately $12 billion.
The deal values Avidity at $72 per share, representing a 46% premium over its closing price on Oct. 25 on the New York Stock Exchange. In early trading, the company's shares rose more than 43% to around $70.
In a statement, Novartis said the proposed acquisition would enhance its neuroscience division by integrating three late-stage programs focused on treating genetic neuromuscular diseases. The transaction is expected to close in the first half of 2026, subject to customary regulatory approvals.
Headquartered in San Diego, Avidity Biosciences specializes in developing Antibody Oligonucleotide Conjugates (AOCs)—a form of RNA-based therapy that targets genetic causes of rare muscle disorders. The company’s technology delivers RNA therapeutics directly to muscle tissue, aiming to restore muscle function and slow disease progression.
Under the terms of the agreement, Avidity will spin off its early-stage precision cardiology programs into a separate entity called Spinco before the completion of the transaction. Until then, both companies will continue to operate independently.
Novartis CEO Vas Narasimhan said the acquisition aligns with the company’s strategy to advance treatments for genetically defined diseases with high unmet medical need. “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,” he said.
Narasimhan added that Avidity’s expertise in delivering RNA therapeutics to muscle tissue would enable Novartis to accelerate the development of new therapies in this field.
The acquisition follows Novartis’s recent pledge to invest $23 billion in the United States over the next five years, as part of a broader strategy to expand its manufacturing and research footprint amid evolving trade and regulatory conditions. The move mirrors similar announcements by other Swiss pharmaceutical firms, including Roche, which plans to invest $50 billion in the U.S. within the same timeframe.
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