Novartis completed its acquisition of Avidity Biosciences on February 27, 2026, finalizing a $12 billion deal that was announced on October 26, 2025. The transaction was structured as a merger of Novartis’s indirect wholly‑owned subsidiary, Ajax Acquisition Sub, Inc., with Avidity.
The deal brings Avidity’s antibody‑directed oligonucleotide conjugate (AOC) platform and three late‑stage programs for myotonic dystrophy type 1, facioscapulohumeral muscular dystrophy, and Duchenne muscular dystrophy into Novartis’s neuroscience franchise. The AOC technology couples monoclonal antibodies with RNA therapeutics to deliver gene‑targeted therapy directly to muscle tissue, a delivery challenge that has limited earlier RNA drugs.
Management said the acquisition strengthens Novartis’s late‑stage neuroscience pipeline and advances its xRNA strategy. CEO Vas Narasimhan noted that the AOC platform “will help reimagine what’s possible for people with devastating genetic neuromuscular diseases.” The addition of Avidity’s assets is expected to raise Novartis’s projected 2024‑2029 sales compound annual growth rate from +5 % to +6 %, reflecting confidence in the commercial potential of the new programs.
Avidity’s financials before the deal were modest: the company reported a net loss of $174.44 million in Q3 2025 and significant R&D spending, underscoring that the $12 billion price reflects future pipeline value rather than current profitability. Novartis’s Q4 2025 earnings, released February 4, 2026, showed earnings per share of $2.03 versus an estimate of $1.99, a beat of $0.04, driven by strong performance of core brands and disciplined cost management. Revenue of $13.34 billion fell short of the $13.88 billion estimate, a miss attributed to weaker demand in certain therapeutic segments.
The acquisition also includes a spin‑off of Avidity’s early‑stage precision cardiology programs into a new independent company, Atrium Therapeutics, Inc. Avidity shareholders received shares in the new entity, preserving value for investors while allowing the cardiology assets to pursue focused development outside the neuromuscular focus.
Analysts view the deal as a strategic fit that positions Novartis to compete more effectively in the growing field of genetic neuromuscular disease treatments, where competitors such as Sarepta Therapeutics are active. The transaction is expected to enhance Novartis’s specialty‑medicine portfolio and support long‑term growth in a high‑margin segment.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.