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Avidity Biosciences, Inc. (RNA) is a biotech company that is being acquired by Novartis in a deal expected to close in H1 2026. The transaction includes a SpinCo entity with $270 million in cash and rights from collaborations with BMY and Lilly. Assuming the main deal closes at $40 per share, the cash portion would be worth $70.3 per share, with potential upside if the SpinCo assets are monetized. The market may be undervaluing the deal due to timing uncertainty and reallocation of biotech funds.

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