🧔♂️ A friendly human may check it before it goes live. More news here
Healthcare firm Novartis to acquire biotech startup Avidity for $12b
Novartis has agreed to acquire Avidity Biosciences, a San Diego-based biotech firm focused on RNA-based therapies for neuromuscular diseases, in a deal valued at US$12 billion.
The transaction will follow the separation of Avidity’s early-stage cardiology programs into a new company, SpinCo.
Avidity develops antibody oligonucleotide conjugates (AOCs), which are designed to deliver RNA therapeutics to muscle tissue.
Novartis said the acquisition will add three late-stage neuroscience programs to its pipeline, targeting conditions such as myotonic dystrophy type 1, facioscapulohumeral muscular dystrophy, and Duchenne muscular dystrophy.
Shareholders of Avidity will receive US$72 per share in cash, a 46% premium to its closing price on October 24, 2025.
The deal, approved by both companies’ boards, is expected to close in H1 2026, pending regulatory and shareholder approval and the completion of the SpinCo spin-off.
🔗 Source: Novartis
🧠 Food for thought
Implications, context, and why it matters.
Avidity programs face regulatory and clinical hurdles at a $12B valuation
- AOC 1001 for myotonic dystrophy type 1 is in Phase 3 HARBOR, yet efficacy and durability remain unproven despite positive MARINA Phase 2 12.
- AOC 1020 for facioscapulohumeral muscular dystrophy cut DUX4-regulated genes by over 50% in Phase 1/2 (DUX4 misexpression drives this disease) but the study lacked power for functional outcomes, so muscle strength gains remain unproven 2.
- AOC 1044 for Duchenne reached up to 1.5% exon 44 skipping in volunteers at 10 mg/kg (exon 44 skipping aims to restore partial dystrophin) 3. Avidity planned to report patient data in the second half of 2024, with benefit unclear 3.
- All programs have Food and Drug Administration (FDA) Fast Track status, which speeds reviews but does not ensure approval, and none has reached commercialization in the cited materials 4.
CDMO demand for oligonucleotide-antibody conjugation will rise as AOC programs advance
- The oligonucleotide Contract Development and Manufacturing Organization (CDMO) market could grow from $3.15 billion in 2024 to $22.73 billion by 2034, and EUROAPI (a European manufacturer of active drug ingredients) targeted ~500 kg per year of combined peptide and oligonucleotide capacity at Frankfurt by 2025 56.
- CDMOs with end-to-end services including fill-finish (final sterile preparation plus packaging) and serialization (unique identifiers on packages for traceability) hold an edge 7. Continuous-flow synthesis that cuts solvent use by up to 80% plus advanced analytical platforms for impurity profiling aligned with FDA’s 2024 oligonucleotide guidance strengthen that position 7.
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.