Avidity Biosciences, Inc. (NASDAQ:RNA) shares experienced a significant surge in premarket trading on Monday, October 27, 2025, following the announcement of a transformative acquisition. The biotechnology company has entered into an agreement to merge with the pharmaceutical giant Novartis AG (NYSE:NVS) in a deal valued at $12 billion on a fully diluted basis.
This transaction offers Avidity shareholders a substantial premium and provides Novartis with access to three late-stage clinical programs focused on rare genetic neuromuscular diseases, in addition to Avidity’s proprietary RNA-targeting delivery platform. The deal is anticipated to be finalized in the first half of 2026, pending regulatory approvals and shareholder consent.
Avidity Secures $12 Billion Buyout From Novartis, Unlocking Shareholder Value
Under the terms of the agreement, Avidity shareholders are set to receive $72.00 per share in cash at closing. This represents a premium of approximately 46% over the company’s closing price of $49.15 on October 24, 2025, and about a 62% premium over the 30-day volume-weighted average price of $44.42. The merger, which received unanimous approval from the boards of directors of both companies, will enable Novartis to acquire Avidity’s neuroscience pipeline and its distinctive RNA-targeting delivery platform.
Specifically, Novartis will gain control of 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).
Prior to the completion of the merger, Avidity plans to spin off its early-stage precision cardiology programs into a new, publicly traded entity named SpinCo. This new company will concentrate on programs such as AOC 1086 and AOC 1072, which target rare genetic cardiomyopathies. Avidity shareholders will receive one SpinCo share for every ten Avidity shares they hold, along with potential pro rata cash distributions if certain assets are divested.
SpinCo is expected to launch with $270 million in capital and will operate publicly under the leadership of CEO Kathleen Gallagher. The acquisition is projected to enhance Novartis’ sales compound annual growth rate (CAGR) from 2024 to 2029, increasing it from 5% to 6%. Furthermore, it is anticipated to create multi-billion-dollar opportunities with product launches slated before 2030.
RNA Stock Hits Record Levels Amid Broad Biotech Momentum
RNA shares were trading at $70.68 in premarket activity at 8:01 AM EDT on Monday, marking a substantial gain of 43.64%, or $21.45 per share, above the previous closing price of $49.15. The stock had concluded regular trading on Friday at $49.15, an increase of $0.60, or 1.24%.
Before the acquisition announcement, Avidity had already achieved robust year-to-date returns of 69.02%, significantly surpassing the S&P 500’s 15.47% gain over the same period. Based on Friday’s closing price, the company’s market capitalization was approximately $7.17 billion, although the acquisition values the company at $12 billion on a fully diluted basis.
Industry analysts reacted favorably to the transaction, with many highlighting its strategic importance for both entities. RBC Capital Markets analyst Luca Issi described the deal as "another bullish signal for biotech," while Bloomberg Intelligence analyst Andrew Galler noted that it provides Novartis with "three near-term launches across DMD, DM1 and FSHD."
The market's positive response was not limited to Avidity. Peer company Dyne Therapeutics (DYN) saw its shares jump as much as 20% in premarket trading, reflecting investors' recognition of the pharmaceutical industry's growing interest in novel RNA modalities for rare muscle diseases. The analyst firm Bernstein downgraded Avidity to Market Perform on October 27, 2025, while simultaneously raising its price target from $52 to $72, effectively aligning with the acquisition price.