By Fineline Cube 
According to reports from several news organizations citing insider sources, that Novartis AG (NYSE: NVS) is evaluating a potential acquisition of Avidity Biosciences Inc. (NASDAQ: RNA). Avidity, a biotechnology company focused on developing therapies for rare genetic disorders, currently has a market capitalization of approximately $5.8 billion. Following the news, Avidity’s stock surged 26% on the day, while shares of its competitor Dyne Therapeutics Inc. (NASDAQ: DYN) rose by 7.5%.
Early-Stage Discussions
The discussions are reportedly at an early stage and remain uncertain, with both Novartis and Avidity declining to comment. Avidity is said to be working with advisers to assess strategic options.
Avidity’s Clinical Pipeline
Avidity currently has three clinical-stage drug candidates targeting various forms of muscular dystrophy, with potential approvals as early as 2027. Its lead candidate, del-zota, is being developed for the treatment of Duchenne muscular dystrophy (DMD) amenable to exon 44 skipping. The drug has received Fast Track designation from the U.S. Food and Drug Administration (FDA) and is currently in a Phase II trial.
Novartis’s Acquisition Strategy
This potential transaction aligns with Novartis’s 2025 acquisition strategy aimed at bolstering its rare disease pipeline and mitigating revenue risks posed by upcoming patent expirations of key products such as Entresto, Xolair, and Cosentyx. Earlier this year, Novartis acquired Anthos Therapeutics for $3.1 billion, reached a deal of up to $1.7 billion with Regulus Therapeutics, and signed a collaboration agreement worth up to $1 billion with Matchpoint Therapeutics.-Fineline Info & Tech