Swiss pharmaceutical giant Novartis AG (NVS) has agreed to acquire American biotech firm Avidity Biosciences (RNA) for roughly $12 billion in an all-cash deal. Novartis will pay Avidity shareholders $72 per share, reflecting a 46% premium over Avidity’s closing price of $49.15 on Friday. The acquisition aims to strengthen Novartis’ research and development (R&D) capabilities and expand its U.S. footprint.
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Novartis specializes in innovative medicines, focusing on patented treatments for oncology, cardiology, and immunology. Avidity Biosciences is developing a new class of ribonucleic acid (RNA) medicines known as antibody oligonucleotide conjugates (AOCs), which combine the targeting abilities of antibodies with the gene-modifying power of RNA therapeutics.
Here’s Why Novartis Is Buying Avidity
Novartis is investing in Avidity’s robust pipeline of RNA therapies targeting muscle-related diseases. CEO Vas Narasimhan stated that the company looks forward to advancing these therapies and improving patient outcomes. The transaction is expected to close in the first half of 2026, following Avidity’s planned spin-off of its early-stage precision heart programs into a separate entity.
Novartis also increased its annual sales forecast to include Avidity’s results. The company now projects its compound annual growth rate (CAGR) for sales to be 6% instead of 5% for the years 2024 through 2029.
Novartis made several big deals in 2025 to strengthen its drug pipeline and future growth. It committed $23 billion to expand its U.S. facilities, including building a second research center in San Diego. Novartis also acquired Anthos Therapeutics and Regulus Therapeutics to boost its cardiovascular and kidney drug development, reflecting a focused plan to grow its core business, invest in infrastructure, and acquire innovative drug programs.
Is Novartis Stock a Buy, Hold, or Sell?
On TipRanks, NVS stock has a Moderate Sell consensus rating based on two Holds and one Sell rating. The average Novartis price target of $119.33 implies 8.5% downside potential from current levels. Year-to-date, NVS stock has gained 38%.
