Novartis has entered a definitive agreement to acquire Avidity Biosciences for USD 12 billion following the spin-off of the latter's early-stage precision cardiology assets, the Swiss major gaining an antibody-oligonucleotide conjugate (AOC) platform targeting muscle tissue through anti-TfR1 monoclonal antibody (mAb) delivery. The transaction includes three late-stage programmes for rare genetic neuromuscular disorders: myotonic dystrophy type 1 (DM1), facioscapulohumeral muscular dystrophy (FSHD) and Duchenne muscular dystrophy (DMD), representing the first disease-modifying therapeutic approaches for these progressive conditions with significant unmet need. Avidity shareholders will receive USD 72.00 per share representing a 46% premium to the October 24 closing price, with total fully diluted valuation of approximately USD 12 billion.

The AOC technology enables targeted RNA therapeutic delivery to muscle tissue, addressing limitations of conventional oligonucleotide distribution and potency. Novartis chief executive officer Vas Narasimhan highlighted the platform's potential for first-in-class treatments for debilitating progressive neuromuscular diseases, where current options remain symptomatic. Acquisition completion is expected for H1 2026 pending regulatory approvals and Avidity shareholder vote, following the cardiology asset separation into a SpinCo entity distributing shares to existing stockholders. The strategic move strengthens Novartis' neuroscience leadership alongside spinal muscular atrophy (SMA) and multiple sclerosis (MS) portfolios through this novel RNA modality expansion.

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