Basel, Switzerland, Oct. 26—Swiss pharmaceutical company Novartis said Sunday it will acquire the U.S.-based biotechnology firm Avidity Biosciences for about $12 billion in cash, marking one of its largest deals in recent years to expand its RNA therapeutics pipeline.
Novartis will pay $72 per share in cash to Avidity shareholders, representing a 46% premium to the company’s closing price of $49.15 on Friday. The deal is expected to close in the first half of 2026, pending regulatory approvals and the completion of Avidity’s planned spinout of certain early-stage programs, including its precision cardiology division.
“The Avidity team has built robust programs with industry-leading delivery of RNA therapeutics to muscle tissue,” Novartis Chief Executive Officer Vas Narasimhan said in a statement. “We look forward to developing these programs to meaningfully change the trajectory of diseases for patients.”
Avidity Biosciences focus on RNA-based innovation
Avidity specializes in antibody oligonucleotide conjugates (AOCs), a novel class of RNA-based medicines designed to target and treat diseases by modifying gene expression. The company’s lead programs focus on muscle disorders and other rare diseases, which align with Novartis’ strategic focus on high-value, specialized therapies.
With the acquisition, Novartis raised its forecast for sales compound annual growth rate (CAGR) between 2024 and 2029 from 5% to 6%. The company said the deal will strengthen its research and development capabilities and accelerate its work in precision medicine.
Broader momentum in RNA therapeutics
The acquisition continues a trend of major pharmaceutical firms investing heavily in RNA-based technologies, an area that has gained momentum following breakthroughs in mRNA vaccine development during the COVID-19 pandemic. Unlike traditional drugs, RNA therapies target diseases at the genetic level, offering potential treatments for conditions previously considered untreatable.
IT has been expanding its presence in the U.S. biotechnology sector over the past year. In early 2025, the company announced plans to invest $23 billion to enhance its U.S. infrastructure, including a new research and development hub in San Diego. It also entered into agreements with Anthos Therapeutics and Regulus Therapeutics to strengthen its cardiovascular and kidney disease pipelines.
Avidity Biosciences Market reaction and strategic outlook
Avidity, headquartered in San Diego, has experienced strong market performance in 2025. Its stock has risen nearly 70% since the beginning of the year, bringing its market capitalization to about $7.2 billion. Novartis shares closed at $130.36 on Friday.
Industry analysts say the acquisition underscores its’ strategy to diversify beyond traditional pharmaceuticals into emerging therapeutic areas driven by genetic science. Once completed, the deal is expected to bolster Novartis’ leadership in RNA innovation and expand its capabilities in rare and muscular diseases.
The transaction remains subject to customary closing conditions, including shareholder and regulatory approvals.
If the acquisition proceeds on schedule, Novartis is expected to integrate Avidity’s RNA research operations into its global R&D network by mid-2026
