In a bold step that cements its place at the forefront of genetic medicine, Novartis AG announced Sunday that it will buy Avidity Biosciences Inc. for $12 billion, marking one of the year’s most significant biotech acquisitions.

The Swiss pharma giant agreed to purchase the California-based developer of RNA therapeutics for $72 per share in cash, representing a 46% premium over Avidity’s Friday Nasdaq closing price of $49.15. Both companies’ boards have unanimously approved the transaction.

The acquisition underscores Novartis’ ambition to expand its neuroscience and RNA therapy pipeline, betting big on next-generation solutions for neuromuscular diseases — conditions often deemed untreatable until now.

A Deal That Marries Science and Strategy

Under the agreement, Covington & Burling LLP is advising Novartis, led by partners Catherine Dargan, Michael Riella, and Alicia Zhang. Kirkland & Ellis LLP is representing Avidity, with a team headed by corporate partners Graham Robinson, Laura Knoll, Greg Schuster, and Merric Kaufman, and capital markets partners Jen Lee and Tamar Donikyan.

Avidity specializes in antibody oligonucleotide conjugates (AOCs) — an emerging class of RNA-based drugs designed to precisely target genetic disorders that impact muscle function. The company’s pipeline includes therapies for serious neuromuscular diseases, with promising clinical data that caught Novartis’ attention.

“Avidity’s technology enhances our commitment to delivering innovative, targeted, and potentially first-in-class medicines to treat devastating, progressive neuromuscular diseases,” said Vas Narasimhan, CEO of Novartis.

Spinning Off Cardiology Assets Before the Merger

Before the deal closes, Avidity plans to spin off its early-stage cardiology programs into a new independent entity known as SpinCo.

Under the arrangement, Avidity shareholders will receive one share of SpinCo for every 10 shares of Avidity they own, plus the right to additional cash payouts if the spinoff’s assets are later sold to a third party. The company expects SpinCo to become publicly traded once the separation is complete.

Avidity said one of its existing partners holds an option to acquire the cardiology assets, though the name of that partner remains undisclosed.

Regulatory and Shareholder Approval Awaited

The Novartis-Avidity acquisition hinges on both Avidity shareholder approval and regulatory clearance from relevant authorities, which have not yet been specified. The companies expect the transaction to close by June 2026.

Once finalized, the merger will not only give Novartis access to Avidity’s RNA platform and neuroscience programs but will also solidify its position as a leading player in genetic and molecular medicine — a field expected to redefine the future of healthcare.

A New Frontier for Neuromuscular Medicine

For Novartis, this isn’t just an acquisition — it’s a declaration of intent. The company’s foray into RNA therapeutics mirrors a broader industry trend, as pharmaceutical giants race to acquire biotech firms with promising platforms that bridge precision biology and data-driven drug design.

By integrating Avidity’s technology and expertise, Novartis aims to accelerate the development of RNA-based treatments capable of targeting diseases at their molecular roots — turning what once seemed impossible into scientific reality.

As Narasimhan put it, this deal “represents a powerful convergence of innovation, purpose, and potential — exactly what modern medicine needs.”