Avidity Biosciences (RNA) AI Stock Analysis

• Market Cap: $10.17B
• Dividend Yield: N/A
• Average Volume (3M): 5.87M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.58
• Revenue Growth: 1.23%
• EPS Growth: -20.45%
• Country: US
• Employees: 391
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.21
• Shares Outstanding: 145,903,340
• 10 Day Avg. Volume: 13,408,221
• 30 Day Avg. Volume: 5,867,608
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.25
• Enterprise Value/Revenue: 233.32
• Enterprise Value/Gross Profit: 252.47
• Enterprise Value/Ebitda: -4.82
• 1Y Price Target: $71.07
• Price Target Upside: 1.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 54 Neutral
• Price Target: $71.00 ▲(1.88% Upside)

Avidity Biosciences' overall stock score is primarily influenced by its financial performance and technical analysis. The company shows strong gross profit margins and revenue growth but struggles with profitability and cash flow. The stock's strong upward momentum is tempered by overbought technical indicators, suggesting caution. Valuation metrics are weak due to negative earnings and lack of dividends, further impacting the score.

Positive Factors

Strong Gross Profit Margins

High gross profit margins indicate efficient cost management, which can enhance profitability as the company scales and potentially improve financial health over time.

Positive Revenue Growth

Consistent revenue growth suggests expanding market reach and product adoption, which can drive long-term business sustainability and attract further investment.

Breakthrough Therapy Designation

Receiving Breakthrough Therapy designation can expedite the development and review process, potentially leading to faster market entry and revenue generation for the company.

Negative Factors

Negative Operating Cash Flow

Negative operating cash flow indicates challenges in sustaining operations without external funding, which can impact long-term viability if not addressed.

Significant Profitability Challenges

Negative profit margins reflect ongoing operational losses, which can hinder the company's ability to reinvest in growth and innovation over time.

Delayed BLA Submission

Delays in regulatory submissions can postpone potential revenue streams and affect investor confidence, impacting the company's long-term growth prospects.

Avidity Biosciences Business Overview & Revenue Model

Company Description

Avidity Biosciences, Inc., a biopharmaceutical company, engages in the development of oligonucleotide-based therapies. It develops antibody oligonucleotide conjugates (AOC) that are designed to treat a range of serious diseases. The company's lead product candidate AOC 1001 is used for the treatment of myotonic dystrophy type 1, a rare monogenic muscle disease; AOC 1044 for the treatment of Duchenne Muscular Dystrophy; and AOC 1020 designed to treat facioscapulohumeral muscular dystrophy which are in preclinical stage. It also offers Lumizyme therapy for Pompe diseases. Avidity Biosciences, Inc. was incorporated in 2012 and is headquartered in San Diego, California.

How the Company Makes Money

Avidity Biosciences generates revenue through a combination of research and development collaborations, partnerships, and potential product sales. The company often enters into strategic collaborations with larger pharmaceutical companies, which may provide upfront payments, milestone payments upon the achievement of certain development stages, and royalties on future sales of any products that result from these partnerships. Additionally, Avidity may receive funding through government grants and public offerings, as well as through the commercialization of its proprietary therapies once they receive regulatory approval. The success of its revenue model is significantly influenced by the advancement of its product pipeline and the establishment of new partnerships within the biotechnology and pharmaceutical sectors.

Avidity Biosciences Financial Statement Overview

Summary

Avidity Biosciences demonstrates strong gross profit margins and revenue growth, but faces significant challenges with profitability and cash flow. The low debt levels provide some financial stability, yet the negative return on equity and operating cash flow highlight ongoing operational difficulties. The company needs to focus on improving profitability and cash flow to enhance its financial health.

Income Statement

Avidity Biosciences shows a strong gross profit margin of 92.41% in the TTM, indicating efficient cost management. However, the company is struggling with negative net profit margins and EBIT margins, reflecting significant operational losses. Revenue growth is positive at 20.19% in the TTM, suggesting some potential for future improvement.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.0043, indicating minimal leverage and financial risk. However, the return on equity is negative, reflecting ongoing losses and challenges in generating shareholder value. The equity ratio is strong, showing a solid capital structure.

Cash Flow

Avidity Biosciences has a negative operating cash flow, which is concerning for sustainability. The free cash flow growth rate is positive at 37.64% in the TTM, but the company still faces challenges in converting net income into cash flow, as indicated by the high free cash flow to net income ratio.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.73M	10.90M	9.56M	9.22M	9.33M	6.79M
Gross Profit	9.91M	10.90M	7.46M	7.84M	8.69M	-30.82M
EBITDA	-519.55M	-376.16M	-233.50M	-177.53M	-117.41M	-43.77M
Net Income	-455.74M	-322.30M	-212.22M	-174.00M	-118.01M	-44.35M
Balance Sheet
Total Assets	1.37B	1.56B	628.55M	638.80M	427.58M	333.90M
Cash, Cash Equivalents and Short-Term Investments	1.18B	1.50B	595.35M	610.73M	405.54M	328.14M
Total Debt	5.13M	6.80M	9.85M	10.69M	11.73M	938.00K
Total Liabilities	176.26M	138.94M	127.79M	60.73M	46.15M	27.68M
Stockholders Equity	1.19B	1.42B	500.76M	578.08M	381.43M	306.22M
Cash Flow
Free Cash Flow	-502.70M	-307.94M	-123.29M	-139.09M	-98.55M	-38.21M
Operating Cash Flow	-489.98M	-300.87M	-119.06M	-136.27M	-94.81M	-37.12M
Investing Cash Flow	-203.91M	-854.20M	-130.07M	-189.96M	-82.52M	-7.79M
Financing Cash Flow	361.90M	1.19B	93.86M	346.17M	176.32M	272.04M

Avidity Biosciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNA, the sentiment is Positive. The current price of 69.69 is above the 20-day moving average (MA) of 52.75, above the 50-day MA of 47.83, and above the 200-day MA of 36.04, indicating a bullish trend. The MACD of 5.68 indicates Negative momentum. The RSI at 79.58 is Negative, neither overbought nor oversold. The STOCH value of 96.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RNA.

Avidity Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PTCT	―	$5.41B	9.77	―	―	96.00%	―
RYTM	―	$7.43B	―	-1334.54%	―	53.55%	30.87%
RNA	―	$10.17B	―	-37.76%	―	1.23%	-20.45%
MRUS	―	$7.20B	―	-48.54%	―	59.77%	-92.92%
CRSP	―	$5.56B	―	-25.34%	―	-81.18%	-69.19%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IMVT	―	$3.77B	―	-77.58%	―	―	-48.38%

Avidity Biosciences Corporate Events

Avidity Biosciences Announces Merger with Novartis AG

On October 25, 2025, Avidity Biosciences announced a merger agreement with Novartis AG, under which Novartis will acquire Avidity for $72.00 per share, valuing the company at approximately $12 billion. The merger includes the separation of Avidity’s early-stage precision cardiology programs into a new entity, SpinCo, which will be led by Kathleen Gallagher. The acquisition will provide Novartis with access to Avidity’s RNA-targeting delivery platform and its late-stage clinical programs. The transaction, expected to close in the first half of 2026, requires regulatory and stockholder approvals and is anticipated to enhance Novartis’ neuroscience pipeline.

The most recent analyst rating on (RNA) stock is a Hold with a $72.00 price target. To see the full list of analyst forecasts on Avidity Biosciences stock, see the RNA Stock Forecast page.

Avidity Biosciences Delays Biologics License Application

On October 13, 2025, Avidity Biosciences announced a delay in the submission of its Biologics License Application for del-zota to the first quarter of 2026, following a pre-BLA meeting with the FDA. This delay is intended to provide additional non-clinical data to support the chemistry, manufacturing, and controls package, impacting the company’s timeline for regulatory approval.

The most recent analyst rating on (RNA) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on Avidity Biosciences stock, see the RNA Stock Forecast page.

Avidity Biosciences’ Phase 2 Study on AOC 1001: A Potential Game-Changer for DM1 Treatment

Study Overview: Avidity Biosciences Inc. is conducting a Phase 2 extension study titled A Phase 2 Extension Study to Evaluate the Long-Term Safety, Tolerability, Efficacy, Pharmacokinetics, and Pharmacodynamics of AOC 1001 Administered Intravenously to Adult Myotonic Dystrophy Type 1 (DM1) Patients. The study aims to assess the long-term effects of AOC 1001 on DM1 patients, focusing on safety and efficacy, which is crucial for advancing treatment options for this genetic disorder.

Avidity Biosciences Announces Major Stock Offering

On September 11, 2025, Avidity Biosciences announced an underwriting agreement to issue and sell 15,000,000 shares of its common stock at $40.00 per share, with underwriters purchasing at $37.70 per share. The offering, expected to close on September 15, 2025, could generate approximately $564.0 million, or $648.8 million if an additional option is exercised. The proceeds will support the development of Avidity’s clinical programs, commercial infrastructure, and research and development of its AOC platform.

The most recent analyst rating on (RNA) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on Avidity Biosciences stock, see the RNA Stock Forecast page.

Avidity Biosciences Amends Share Plan Amid Trial Success

On September 9, 2025, Avidity Biosciences‘ board approved an amendment to increase the number of shares in their Employment Inducement Incentive Award Plan. The company announced positive results from the EXPLORE44 and EXPLORE44-OLE trials, showing significant improvements in patients with DMD treated with delpacibart zotadirsen. The data revealed a reversal of disease progression and improved functional measures, with a notable increase in dystrophin production and reduction in creatine kinase levels. Avidity plans to submit a Biologics License Application to the FDA by the end of 2025, aiming for a 2026 launch, marking a significant step in their strategic goals for commercialization.

The most recent analyst rating on (RNA) stock is a Buy with a $96.00 price target. To see the full list of analyst forecasts on Avidity Biosciences stock, see the RNA Stock Forecast page.

Avidity Biosciences’ Promising Phase 3 Study on Del-desiran for DM1: What Investors Need to Know

Study Overview: Avidity Biosciences Inc. is conducting a Phase 3 Global Open-Label Extension Study titled A Global Phase 3 Open-Label Extension Study to Assess the Long-Term Safety, Tolerability, and Efficacy of Intravenous AOC 1001 for the Treatment of Myotonic Dystrophy Type 1. The study aims to evaluate the long-term safety, tolerability, and efficacy of the drug del-desiran (formerly AOC 1001) in treating Myotonic Dystrophy Type 1 (DM1), a significant neuromuscular disorder.

Avidity Biosciences’ Phase 3 Study on AOC 1020: A Potential Breakthrough for FSHD

Study Overview: Avidity Biosciences Inc. is conducting a Phase 3 study titled A Randomized, Double-blind, Placebo-controlled, Phase 3 Study to Evaluate the Efficacy and Safety of Intravenous AOC 1020 for the Treatment of Facioscapulohumeral Muscular Dystrophy (FSHD). The study aims to assess the effectiveness and safety of AOC 1020, a promising treatment for FSHD, a genetic muscle disorder. This study is significant as it could lead to a new therapeutic option for patients with this debilitating condition.

Avidity Biosciences Advances RNA Therapeutics with Strong Q2

Avidity Biosciences, Inc. is a biopharmaceutical company focused on developing RNA therapeutics, specifically Antibody Oligonucleotide Conjugates (AOCs™), to treat rare muscle diseases and other conditions. The company recently reported its second quarter 2025 financial results, highlighting significant advancements in its clinical programs and a robust financial position.

Avidity Biosciences Signs Manufacturing Agreement with Lonza

On August 1, 2025, Avidity Biosciences entered into a Manufacturing Services Agreement with Lonza to produce drug substances and products for future commercial use, committing to purchase approximately $620 million in products from 2026 to 2028. This agreement supports Avidity’s preparation for potential product launches, as the company progresses with its RNA therapeutic programs, including three potential BLA submissions within a year. Avidity’s strong financial position, with cash reserves expected to fund operations until mid-2027, underpins its readiness for global commercialization starting in 2026.

The most recent analyst rating on (RNA) stock is a Buy with a $56.00 price target. To see the full list of analyst forecasts on Avidity Biosciences stock, see the RNA Stock Forecast page.

Avidity Biosciences’ Phase 3 Study Update: Del-desiran for Myotonic Dystrophy

Study Overview: Avidity Biosciences Inc. is conducting a Phase 3 global study titled A Phase 3 Randomized, Double-Blind, Placebo-Controlled, Global Study to Evaluate the Efficacy and Safety of Intravenous AOC 1001 for the Treatment of Myotonic Dystrophy Type 1. The study aims to assess the efficacy and safety of the drug del-desiran, formerly known as AOC 1001, for treating Myotonic Dystrophy Type 1, a genetic disorder that affects muscle function.