Novartis buys Avidity for $12B to lead RNA drug push for muscle disease

Novartis is acquiring Avidity Biosciences for $12 billion to expand its RNA drug pipeline targeting rare neuromuscular diseases.

Why it matters: The deal positions Novartis at the forefront of RNA-based treatments for muscle disorders, potentially unlocking multibillion-dollar revenue streams and providing new hope for patients with few current treatment options.

Backstory: Avidity develops RNA medicines, specifically antisense oligonucleotide conjugates (AOCs), that can target hard-to-reach muscle tissue; a major advance over current RNA therapies, which mostly focus on the liver. Its leading drug candidates are in late-stage trials for Duchenne muscular dystrophy, facioscapulohumeral muscular dystrophy, and myotonic dystrophy type 1.

Big picture: This is the second-largest biotech acquisition of 2025, trailing only Johnson & Johnson’s $14.6B deal for Intra-Cellular Therapies. It reflects a resurgence in biotech M&A activity (see today’s intro), with October seeing the highest number of $50M+ deals in years.

Zoom in: Novartis paid $72/share, a 46% premium over Avidity’s last closing price. The acquisition adds to Novartis' existing neuromuscular portfolio, which includes spinal muscular atrophy gene therapy (via AveXis) and programs from Kate Therapeutics.

What’s next: Avidity will spin off its early cardiovascular programs into a new public company. Novartis expects FDA filings to begin in early 2026, with trial results for two more drugs due in Q2 2026.