Acquisition Strengthens Novartis’ RNA Therapeutics Portfolio
Swiss pharmaceutical leader Novartis has announced plans to acquire Avidity Biosciences in a deal valued at approximately $12 billion, marking one of the largest biotechnology acquisitions of the year. The transaction, revealed Sunday, underscores Novartis’ growing ambition in RNA-based therapeutics and its strategy to expand its drug development pipeline across key disease areas.
Under the agreement, Novartis will pay $72 per share in cash to Avidity shareholders—a 46% premium over Avidity’s closing stock price of $49.15 on Friday. The deal is expected to close during the first half of 2026, following the planned spinout of Avidity’s early-stage precision cardiology programs.
Novartis Eyes RNA Therapeutics Leadership
“The Avidity team has built robust programs with industry-leading delivery of RNA therapeutics to muscle tissue,” said Vas Narasimhan, CEO of Novartis, in a company statement. “We look forward to developing these programs to meaningfully change the trajectory of diseases for patients.”
Avidity is known for pioneering a new generation of RNA therapeutics known as antibody oligonucleotide conjugates (AOCs). These treatments combine antibodies with RNA-based molecules to precisely target and modulate gene expression in muscle tissue—an innovation that could redefine therapies for muscular, cardiovascular, and genetic disorders.
Following the acquisition announcement, Novartis raised its compound annual growth rate (CAGR) forecast for sales between 2024 and 2029 from 5% to 6%, reflecting the expected revenue potential from Avidity’s pipeline and platform technologies.
Strategic Expansion and U.S. Investment Push
The acquisition comes as Novartis intensifies its research and development (R&D) initiatives globally. Earlier this year, the company pledged a $23 billion investment to strengthen its U.S. infrastructure, including the construction of a second R&D hub in San Diego. The move aims to accelerate innovation and attract top talent in the American biotech ecosystem.
In addition to the Avidity purchase, Novartis has forged partnerships with Anthos Therapeutics and Regulus Therapeutics to advance treatments for cardiovascular and kidney diseases. These collaborations highlight the company’s broader effort to diversify its therapeutic portfolio and sustain long-term growth through precision medicine and advanced biological platforms.
Market Reaction and Outlook
Avidity Biosciences’ stock, which has surged nearly 70% year-to-date, closed at $49.15 on Friday with a market capitalization of about $7.2 billion. Following the announcement, shares are expected to jump as investors react to the acquisition premium. Novartis stock closed at $130.36 on the same day.
Analysts say the deal represents a major step for Novartis as it positions itself among leaders in the RNA therapeutics race, an area attracting growing interest from global pharmaceutical firms. Pending regulatory approval and the successful integration of Avidity’s technologies, the acquisition could significantly boost Novartis’ innovation capacity and reinforce its leadership in next-generation drug development.
With this acquisition, Novartis signals its confidence in RNA therapeutics as a transformative frontier in modern medicine—one that could reshape treatment options for patients with previously untreatable diseases.
Keywords: Novartis, Avidity Biosciences, RNA therapeutics, antibody oligonucleotide conjugates, Vas Narasimhan, biotechnology acquisition, precision medicine, pharmaceutical industry, R&D investment, San Diego hub