Avidity Biosciences Stock Surges 42% on $12 Billion Novartis Merger Deal Ranks 312th in Trading Volume

Market Snapshot

On November 3, 2025, Avidity Biosciences (RNA) experienced a 0.07% decline in its stock price, marking a modest drop for the day. However, the company’s trading volume surged to $0.42 billion, a 45.34% decrease compared to the prior day’s activity. This volume ranked RNA as the 312th most actively traded stock in the market, reflecting sustained investor interest despite the intraday dip. While the daily price movement was minimal, the stock’s performance over the preceding week stood out: it climbed 42.1% as investors reacted to a major corporate development—a $12 billion merger agreement with Novartis AG.

Key Drivers

The primary catalyst for RNA’s recent volatility was the announcement of a definitive merger plan with Novartis AG. Under the terms disclosed, Novartis will acquire Avidity Biosciences through a newly formed subsidiary at $72 per share, a deal valued at $12 billion. The merger aims to bolster Novartis’s neuroscience portfolio, leveraging Avidity’s early-stage precision cardiology programs and collaborations. Investors interpreted the agreement as a validation of Avidity’s scientific potential, driving the week-on-week surge in its stock price.

A critical structural detail of the merger involves the creation of SpinCo, a wholly owned subsidiary of Avidity, to which the company will transfer its early-stage cardiology programs and existing partnerships before the deal closes. This transition, expected to occur by mid-2026, ensures continuity in Avidity’s research initiatives while aligning with Novartis’s strategic goals. The news also highlighted that SpinCo will retain certain Avidity assets, with one of the company’s existing partners granted preferential negotiation rights for these assets—a provision designed to mitigate competitive bidding and streamline the transfer process.

Shareholder benefits were another focal point of the merger’s structure. Current RNA shareholders will receive one SpinCo share for every 10 shares they hold, or cash if Avidity opts to sell SpinCo to a third party. This dual-option structure provides flexibility for investors, balancing liquidity needs with long-term value retention. The clarity of these terms likely contributed to the stock’s sharp weekly rise, as investors perceived the merger as a definitive resolution to Avidity’s standalone growth challenges.

Despite the positive momentum, the daily 0.07% decline suggests short-term profit-taking or caution among traders ahead of the merger’s completion in early 2026. The extended timeline—during which both companies will remain independent—may introduce volatility as market participants assess progress in due diligence or regulatory hurdles. However, the magnitude of the week-on-week gain underscores the market’s confidence in the merger’s strategic logic and the premium offered by Novartis.

The news coverage also included a comparative note on AI stocks, though this appears to be a promotional angle from the article’s publisher rather than an analytical insight. The core narrative remains centered on Avidity’s merger, which is positioned as a transformative event for the biotech firm. With no material disclosures of risks or uncertainties in the provided articles, the focus remains on the merger’s execution and its implications for Avidity’s research pipeline and shareholder value.

The merger’s expected closure in the first half of 2026 introduces a clear timeline for stakeholders, allowing investors to monitor developments without immediate operational disruptions. Until then, Avidity and Novartis will continue operating independently, preserving their reputations and financial autonomy. This interim period may see continued trading activity driven by merger-related speculation, though the recent 42.1% weekly gain indicates that the market has largely priced in the deal’s immediate benefits.