Novartis Plans $12B Acquisition to Expand Neuroscience RNA Therapies

Novartis is acquiring Avidity Biosciences for approximately $12 billion to strengthen its neuroscience portfolio through Avidity's pioneering antibody oligonucleotide conjugate (AOC) platform, which delivers RNA therapeutics directly to muscle tissue to target rare neuromuscular disorders such as Duchenne muscular dystrophy, myotonic dystrophy type 1, and facioscapulohumeral muscular dystrophy. This deal, expected to close in the first half of 2026 following the spin-off of Avidity's early-stage cardiology programs, complements Novartis's existing pipeline, including its spinal muscular atrophy gene therapy Zolgensma, and is anticipated to increase Novartis' compound annual growth rate to 6%. Despite initial cautiousness from analysts regarding the efficacy of Avidity's therapies, the acquisition marks Novartis' largest under CEO Vas Narasimhan and reflects a strategic commitment to innovative RNA medicines for progressive neuromuscular diseases. Investors reacted positively, with Avidity's shares surging significantly on the announcement, while Novartis' shares dipped slightly. The acquisition includes late-stage therapeutic candidates nearing regulatory submission, potentially providing first-in-class treatments addressing genetic drivers of muscle-damaging conditions. Overall, the deal positions Novartis to deliver substantial shareholder returns by expanding its leadership in RNA-based neuroscience therapies.