Avidity Biosciences' RNA Stock Surges 36% Amid Novartis Acquisition Rumors

Avidity Biosciences RNA stock has surged 36% in the past month following a report by the Financial Times that pharma giant Novartis is interested in acquiring the company. Discussions for a potential deal are at an early stage, and there is no guarantee it will be secured. Novartis is facing generic erosion for several top-selling drugs and acquiring Avidity would expand its pipeline into rare muscular diseases and strengthen its cardiovascular footprint.

Avidity Biosciences' RNA stock has experienced a significant surge, increasing by 36% in the past month following a report by the Financial Times that pharma giant Novartis NVS is interested in acquiring the company. The discussions for a potential deal are currently at an early stage, and there is no guarantee that the acquisition will be secured [2].

The report from the Financial Times stated that Novartis is exploring the possibility of acquiring Avidity Biosciences, a clinical-stage biotech company developing novel RNA therapeutics. Avidity's major clinical programs include del-desiran for myotonic dystrophy type 1 (DM1), del-brax for facioscapulohumeral muscular dystrophy (FSHD), and del-zota for Duchenne muscular dystrophy (DMD). The company has also expanded into the precision cardiology space with two new pipeline drugs, AOC 1086 and AOC 1072, targeting rare genetic cardiomyopathies [2].

Novartis is facing potential generic erosion for several top-selling drugs, including Entresto and Gleevec/Glivec, which are expected to lose protection this year. The acquisition of Avidity would significantly expand Novartis' pipeline into the rare muscular diseases space and strengthen its footprint in the cardiovascular area. Earlier this year, Novartis completed acquisitions of heart drug biotech Anthos Therapeutics and kidney biotech Regulus Therapeutics to protect against revenue loss [2].

Avidity Biosciences has seen its stock performance outpace the industry average, with a year-to-date growth of 59% compared to the industry's 4% growth. The company generated $3.8 million from collaboration revenues in the second quarter of 2025, primarily from its deal with Bristol Myers BMY [2].

Despite the positive news, Avidity Biosciences currently carries a Zacks Rank #4 (Sell), indicating a cautious outlook from analysts. The company's stock performance has been driven by the rumors of a potential acquisition by Novartis, but the deal is still at an early stage, and there is no guarantee it will materialize [2].

References:
[1] https://news.bloomberglaw.com/securities-law/sec-hits-ex-chinook-director-with-novartis-insider-trade-claims
[2] https://www.nasdaq.com/articles/rna-stock-moves-more-30-week-whats-driving-rally
[3] https://www.theglobeandmail.com/investing/markets/markets-news/GetNews/34302288/spinal-muscular-atrophy-pipeline-2025-fda-updates-therapy-innovations-and-clinical-trial-landscape-analysis-by-delveinsight-genentech-inc-chugai-pharma-cytokinetics-inc-ionis-pharma-genzyme/