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.
