Novartis has entered into a definitive agreement to acquire Avidity Biosciences, a San Diego-based biopharmaceutical company pioneering a new class of RNA therapeutics designed to deliver oligonucleotides to muscle tissue. The acquisition will follow the planned separation of Avidity’s early-stage precision cardiology programs into a new, independent company (SpinCo).

This transaction strengthens the Novartis neuroscience franchise with three late-stage programs targeting genetic neuromuscular diseases and advances the company’s xRNA strategy through the addition of Avidity’s scientifically robust, muscle-directed Antibody Oligonucleotide Conjugates (AOCs)platform. The deal is valued at US$ 12 billion in cash and is expected to close in the first half of 2026, subject to the completion of the SpinCo separation and customary closing conditions.

The acquisition is expected to raise the Novartis projected sales CAGR for 2024–2029 from +5 per cent to +6 per cent, underscoring the company’s confidence in unlocking multi-billion-dollar opportunities with several planned product launches before 2030.

Avidity has built a differentiated platform and a pipeline of potential first-in-class, disease-modifying therapies targeting the genetic causes of serious neuromuscular conditions. Its late-stage programs include candidates formyotonic dystrophy type 1 (DM1), facioscapulohumeral muscular dystrophy (FSHD), and Duchenne muscular dystrophy (DMD)—all severe, progressive disorders with high unmet medical need and no approved disease-modifying treatments.

“Avidity’s pioneering AOC platform and late-stage assets strengthen our commitment to advancing innovative, targeted, and potentially first-in-class medicines for devastating neuromuscular diseases,” said Vas Narasimhan, CEO of Novartis. “The Avidity team has developed industry-leading RNA delivery technologies for muscle tissue. Together, we aim to transform the trajectory of these diseases and bring meaningful therapies to patients in need.”

The acquisition reinforces the Novartis leadership in neuroscience and genetic medicine, building on its expertise in spinal muscular atrophy (SMA) and leveraging its global development and commercialization capabilities. Avidity’s AOC technology combines the tissue specificity of monoclonal antibodies with the precision of oligonucleotides, enabling targeted RNA delivery to muscle cells that were previously difficult to reach. This approach has the potential to restore muscle function, address underlying genetic causes, and significantly improve outcomes for patients with neuromuscular diseases.

By integrating Avidity’s platform and pipeline, Novartis aims to accelerate the development of next-generation RNA-based therapies and deliver transformative innovation to patients worldwide.