Avidity Biosciences, Inc. (NASDAQ:RNA) shares are rocketing premarket on Monday. On Sunday, the company agreed to merge with Novartis AG (NYSE:NVS) in a deal valued at $12 billion on a fully diluted basis.
Transaction Details
As per the deal, Avidity shareholders will receive $72.00 per share in cash at closing.
The price reflects a roughly 46% premium over the company’s October 24, 2025, closing price of $49.15 and about a 62% premium over the 30-day volume-weighted average price of $44.42.
Also Read: Avidity Drug Shows Yearlong Gains In Duchenne Muscular Dystrophy Trial
Acquisition Details
Novartis will acquire Avidity’s neuroscience pipeline and its unique RNA-targeting delivery platform.
The deal covers three late-stage clinical programs: delpacibart zotadirsen (del-zota) for Duchenne muscular dystrophy (DMD), delpacibart etedesiran (del-desiran) for myotonic dystrophy type 1 (DM1), and delpacibart braxlosiran (del-brax) for facioscapulohumeral muscular dystrophy (FSHD).
New Company
The deal, approved unanimously by both boards, will follow Avidity’s spin-off of its early-stage precision cardiology programs into a publicly traded company, SpinCo.
SpinCo will focus on Avidity’s early-stage precision cardiology programs, including AOC 1086 and AOC 1072 for rare genetic cardiomyopathies.
Meanwhile, it will maintain partnerships with Bristol-Myers Squibb Company (NYSE:BMY) and Eli Lilly and Company (NYSE:LLY) and advance Avidity’s proprietary platform for cardiology applications.
Closure Details
Notably, Avidity will transfer its early-stage cardiology programs and collaborations to SpinCo before the merger closure.
Avidity shareholders will receive one SpinCo share per ten Avidity shares and/or a pro rata cash distribution if certain assets are sold.
SpinCo, with $270 million in capital, will trade publicly under CEO Kathleen Gallagher and board chair Sarah Boyce.
Novartis’ acquisition of Avidity depends on SpinCo’s separation, regulatory approvals, and shareholder consent. Closing is expected in the first half of 2026.
Novartis Synergies
The deal enhances Novartis’ neuroscience portfolio with three late-stage programs targeting genetic neuromuscular diseases. It strengthens its xRNA strategy with a muscle-directed AOCs platform and first-in-disease pipeline.
The acquisition is projected to increase Novartis’ 2024–2029 sales CAGR from 5% to 6%.
Also, the buyout is expected to create multi-billion-dollar opportunities with launches before 2030.
As of June 30, 2025, Novartis’ net debt stood at $23.8 billion.
Price Action: RNA shares were trading higher by 43.80% to $70.68 premarket at last check Monday.
Read Next:
Photo via Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
