A Big Bet on Muscle Disease

Novartis just announced it's acquiring San Diego biotech Avidity Biosciences for approximately $12 billion—the second-largest pharmaceutical deal of 2025. The Swiss pharmaceutical giant is paying $72 per share, a 46% premium over Friday's closing price, betting heavily on Avidity's innovative approach to treating rare neuromuscular diseases. This comes as Novartis faces a patent cliff for several blockbuster drugs and seeks to strengthen its portfolio in areas with limited treatment options. What makes Avidity particularly attractive is its pioneering platform that delivers RNA therapeutics directly to muscle tissue using antibody oligonucleotide conjugates. The company has three late-stage programs addressing devastating conditions like Duchenne muscular dystrophy, facioscapulohumeral muscular dystrophy, and myotonic dystrophy type 1. Its lead candidate, del-zota, received positive FDA feedback and is slated for regulatory submission in early 2026. In an interesting twist, Avidity's early-stage cardiology programs will spin off into a new publicly traded company led by Kathleen Gallagher, currently Avidity's chief program officer. This structure allows Novartis to focus on the neuromuscular assets while preserving shareholder value in Avidity's other promising research areas.