Shares of Avidity Biosciences (NASDAQ:RNA) and Dyne Therapeutics (NASDAQ:DYN) soared on Monday after Novartis (NYSE:NVS) announced a landmark agreement to acquire Avidity in a deal valued at about $12 billion in cash.
Avidity’s stock skyrocketed more than 42% in premarket trading, while Dyne climbed over 20%, as investors reacted to one of the biggest biotech transactions of the year. The offer of $72 per share represents a 46% premium to Avidity’s last closing price and nearly 90% above the level seen in August, when early reports of takeover talks emerged.
The deal, carrying an enterprise value of roughly $11 billion and expected to close in the first half of 2026, ranks as the second-largest biotechnology acquisition this year—trailing only Johnson & Johnson’s $14.6 billion purchase of Intra-Cellular Therapies.
Novartis said the acquisition will “bolster mid-single-digit” long-term growth and raised its 2024–2029 compound annual sales growth forecast from 5% to 6%.
Analysts at Stifel described the transaction as “highly validating for the space,” particularly for companies developing muscle delivery technologies like transferrin receptor 1 (TfR1). They added that the premium paid by Novartis confirms “(1) the value of muscle delivery technology [specifically TfR1] and (2) the attractiveness of large orphan markets like DM1, DMD and FSHD.”
As part of the deal, Avidity will spin off its early-stage cardiology programs and certain collaborations into a new standalone entity, while Novartis gains access to Avidity’s late-stage RNA-based therapeutics targeting key neuromuscular conditions such as myotonic dystrophy type 1 (DM1) and Duchenne muscular dystrophy (DMD)—areas that also overlap with Dyne’s research focus.
Dyne’s shares rallied sharply following the announcement, as investors bet the deal could spark further consolidation in the RNA therapeutics field. “Even as this validates a competitor, we expect DYN shares to trade meaningfully higher following this announcement as this arguably bolsters the DYN M&A case,” Stifel said, reiterating its “buy” rating and $17.12 price target.
The brokerage added that the acquisition reinforces investor confidence in RNA-based drug development and underscores the commercial potential of Dyne’s muscular disorder programs. “We still believe DYN has a credible chance at being best-in-class in DM1—the story here plays out with pivotal data from both RNA/DYN in 2026,” analysts said.
They further noted that Dyne’s clinical results have shown “more consistent effects on vHOT and a larger effect size on splicing,” suggesting robust efficacy from its proprietary platform.
Despite recent volatility in the biotech sector, the substantial valuation assigned to Avidity may reignite investor interest in similar companies. As Stifel concluded, “Any potential acquirers who were interested and missed out on RNA could plausibly look to DYN who also has a TfR1 muscle platform addressing large end markets that clearly works.”