Novartis is buying Avidity Biosciences for $12B cash at $72 per share — a ~46% premium to expand its RNA drug pipeline

It is Novartis’ largest acquisition since 2018 under CEO Vas Narasimhan and a clear bet that RNA-targeted therapies can help offset looming patent cliffs. The terms are straightforward: all-cash at $72/share, valuing Avidity at $12B. On the announcement, Avidity (RNA) rose ~43% pre-market to ~$70.45, while Novartis (NVS) slipped ~1%, a typical acquirer/target reaction. Avidity’s pipeline centers on antibody-oligonucleotide conjugates aimed at DMD, DM1 and FSHD-like neuromuscular disorders, which would broaden Novartis’ neuroscience footprint. Closing remains subject to customary regulatory approvals.

Biotech M&A is re-accelerating in 2025 as large caps deploy cash into later-stage, de-risked assets. Bloomberg characterizes this as Novartis’ biggest deal in more than a decade, underscoring the urgency to secure potential blockbusters as generics pressure top sellers. Regardless of framing, the $12B check signals renewed appetite for RNA platforms with clinical traction.

The takeaway is a headline $12B price and ~46% premium show late-stage, data-rich biotechs can still command strategic pricing, while acquirers tolerate near-term EPS drag for pipeline velocity. Expect read-across to RNA peers and more neuromuscular assets to surface in banker pitch books over the next quarter.