Shares of Avidity Biosciences Inc (NASDAQ:RNA) rose sharply in pre-market trading after the company agreed to be acquired by Novartis AG (NYSE:NVS).Holders of Avidity common stock will receive $72.00 per share in cash at closing, representing a premium of around 46% over Avidity’s closing share price on Oct. 24.Avidity Biosciences shares surged 42.1% to $69.85 in the pre-market trading session.Here are some other stocks moving in pre-market trading.GainersClick Holdings Limited (NASDAQ:CLIK) gained 173% to ...

Core Viewpoint - Novartis AG is preparing to release its third-quarter 2025 earnings, with market expectations indicating a solid financial performance in terms of earnings per share and revenue [1][2]. Financial Performance Expectations - Wall Street anticipates Novartis to report earnings per share (EPS) of $2.26, while analysts project a slightly higher EPS of $2.28 [2][6]. - The revenue forecast is approximately $13.87 billion, with analysts estimating a close $13.7 billion [2][6]. Stock Performance and Valuation - Novartis' stock opened at $130.48, with a market capitalization of $275.64 billion [3]. - The stock has a price-to-earnings (P/E) ratio of 18.99, indicating investor willingness to pay for earnings [3][6]. - The beta of 0.64 suggests moderate volatility compared to the market, indicating less likelihood of large price swings [3][6]. Financial Health Metrics - The current ratio is 0.82 and the quick ratio is 0.62, reflecting the company's ability to cover short-term liabilities [4]. - The debt-to-equity ratio of 0.53 shows a balanced approach to financing, with moderate debt levels compared to equity [4]. Moving Averages and Trends - The stock's fifty-day simple moving average is $127.56, while the 200-day average is $119.49, indicating a positive trend over the past year [4]. Valuation Metrics - Novartis has a price-to-sales ratio of 4.64 and an enterprise value to sales ratio of 5.11, reflecting the market's view of its revenue and total worth [5]. - The enterprise value to operating cash flow ratio is 13.44, highlighting the company's cash flow efficiency [5]. - An earnings yield of 3.79% provides insight into the return on investment for shareholders [5].

Core Insights - Novartis has signed a strategic cooperation agreement with Kangzhe Weisheng, a wholly-owned subsidiary of Kangzhe Pharmaceutical, for the exclusive import, commercial promotion, and distribution rights of two ophthalmic products in China starting from November 1, 2025 [1] - The agreement is set for a duration of five years, indicating a long-term partnership between the companies [1] - This strategic agreement aligns with Novartis' global "focus" strategy, concentrating on four core therapeutic areas: cardiovascular, renal and metabolic, oncology, and immunology and neuroscience [1] Company Summary - Novartis will transfer the rights for its ophthalmic products, Nofiz (Ranibizumab injection) and Beiyoushi (Brolucizumab injection), to Kangzhe Weisheng [1] - The partnership aims to enhance resource integration and provide innovative drugs with high clinical value to patients [1]

Group 1 - Novartis has been actively pursuing acquisition deals over the past year to strengthen its pipeline in response to patent expirations of key drugs like heart failure therapy, Kymriah [1][2] - On October 26, Novartis announced a proposed cash acquisition of Avidity Biosciences for approximately $12 billion to enhance its treatment portfolio for rare muscle diseases [1] - Avidity's latest market capitalization is close to $6.7 billion, and Novartis has completed nearly $20 billion in potential acquisition deals over the past year [1] Group 2 - Recent acquisitions by Novartis include: - $1.1 billion for gene therapy company Kate Therapeutics in November last year [2] - $3.1 billion for Anthos Therapeutics to enhance its cardiovascular treatment line in February [2] - $1.7 billion for Regulus Therapeutics for a kidney disease therapy in April [2] - Up to $1 billion agreement with Matchpoint Therapeutics for oral drugs targeting inflammatory diseases in July [2] - $1.4 billion acquisition of Tourmaline Bio for a cardiovascular treatment drug in September [2] - These acquisitions are aimed at addressing the patent expiration crisis of key drugs, with Novartis's stock price increasing approximately 34% this year, leading to a market capitalization exceeding $275 billion [2]

Group 1 - The eighth China International Import Expo (CIIE) is set to open, with Novartis participating for the eighth consecutive time, emphasizing its commitment to being a valuable and trustworthy healthcare partner in China [1][2] - Novartis will showcase nearly 20 innovative products across four core therapeutic areas: cardiovascular, renal and metabolic, oncology, and neuroscience, highlighting its strong innovation capabilities [1] - The "Focus on Innovation" exhibition area will feature award-winning products and immersive experiences, allowing attendees to engage with cutting-edge drug mechanisms and treatment methods [1] Group 2 - Novartis aims to deepen its roots in China, reflecting on its century-long history in the country and its new vision for development since 2018, which includes increased investment and collaboration with local industries [2] - The "Access to Medicine" exhibition area will demonstrate Novartis's efforts to enhance medicine accessibility for Chinese patients through partnerships with government, hospitals, and industry players [2] - A giant curved screen at the Novartis booth will showcase advanced pharmaceutical technologies, while an employer culture experience area will allow visitors to engage with the company's culture and receive commemorative badges [2]

Core Viewpoint - Novartis has agreed to acquire Avidity Biosciences for $72 per share in cash, representing a 46% premium, with a total transaction value of $12 billion. This acquisition is expected to stimulate further mergers and acquisitions in the pharmaceutical industry [1] Group 1 - The acquisition price of $72 per share indicates a significant premium of 46% over Avidity's current market value [1] - The total value of the transaction is estimated at $12 billion, highlighting the scale of the deal within the biotech sector [1] - Avidity is developing experimental drugs for rare diseases, including treatments for neuromuscular diseases, which aligns with Novartis's strategic focus on innovative therapies [1]

Core Viewpoint - Novartis has announced an agreement to acquire Avidity Biosciences for $12 billion, focusing on innovative RNA therapies for neuromuscular diseases [3][30]. Group 1: Acquisition Details - The acquisition involves Novartis purchasing all outstanding shares of Avidity at $72.00 per share, representing a 46% premium over Avidity's closing price on October 24, 2025 [30]. - The deal is expected to close in the first half of 2026, contingent upon the separation of Avidity's early precision cardiology projects into a new entity, SpinCo [35]. - Avidity's late-stage neuroscience projects will be integrated into Novartis, enhancing its pipeline in treating genetic neuromuscular diseases [8][22]. Group 2: Strategic Importance - The acquisition is projected to increase Novartis's expected compound annual growth rate (CAGR) from 5% to 6% for the years 2024-2029, presenting a significant opportunity for shareholder returns [13][30]. - Avidity's innovative AOC RNA therapy platform aims to address severe genetic neuromuscular diseases, potentially leading to first-in-class treatment candidates [8][22]. Group 3: Market Potential - External forecasts suggest multi-billion-dollar peak sales potential for Avidity's therapies targeting diseases such as DM1 and FSHD, with no loss of exclusivity expected before 2042 [26][30]. - Avidity's therapies are designed to correct underlying genetic causes, offering meaningful benefits to patients suffering from conditions like DM1, FSHD, and DMD [22][47]. Group 4: Clinical Development - Avidity's lead candidate, Del-desiran, is designed to degrade DMPK mRNA to address the root cause of DM1, with promising data from Phase 1/2 studies indicating potential for significant clinical impact [36][40]. - Del-brax, targeting FSHD, has shown improvements in functional mobility and muscle strength in clinical trials, with ongoing studies expected to yield further data [48][50].

Core Viewpoint - Swiss pharmaceutical giant Novartis has agreed to acquire Avidity Biosciences, a biotechnology company focused on rare diseases, for $12 billion, marking its largest acquisition in over a decade [1] Group 1: Acquisition Details - Novartis will purchase Avidity at a price of $72 per share, representing a 46% premium over Avidity's closing price of approximately $49 last Friday [1] - The enterprise valuation of Avidity, which has net cash, is estimated at $11 billion [1] Group 2: Strategic Importance - CEO Vas Narasimhan indicated that two of Avidity's late-stage drug candidates have the potential to achieve peak annual sales in the billions, while a third could generate $500 million to $1 billion in peak year revenue [4] - These late-stage assets are expected to be market-ready by 2030, helping Novartis address the impending patent cliff of its key drugs [4] Group 3: Financial Impact - The acquisition is projected to increase Novartis's compound annual growth rate (CAGR) from 5% to 6% for the period from 2024 to 2029, although it will dilute profitability by 1 to 2 percentage points in the coming years [4] - The transaction will not affect Novartis's earnings guidance for the current year [4] Group 4: Broader Acquisition Strategy - Novartis is actively pursuing acquisitions to mitigate the impact of patent expirations on its major drugs, having recently acquired Tourmaline Bio for $1.4 billion and Anthos Therapeutics for up to $3.1 billion [6] - The company has also entered into a collaboration agreement with Chinese firm Argo Biopharma worth up to $5.2 billion for rights to a cardiovascular drug [6]

Core Insights - Novartis agrees to acquire Avidity Biosciences for approximately $12 billion, at a price of $72 per share [1] - The acquisition aims to expand Novartis' rare disease treatment portfolio, particularly therapies for muscle diseases [1] - Avidity Biosciences will spin off its early-stage heart disease treatment project into a new company named Spinco, which is expected to go public [1] - Avidity's flagship drug, Del-zota, is in early to mid-stage clinical trials for Duchenne muscular dystrophy, along with other candidates for severe muscle diseases [1] - This acquisition aligns with Novartis' recent strategy to address the patent cliff of several blockbuster drugs through a series of transactions [1]

Core Viewpoint - Novartis has agreed to acquire Avidity Biosciences for a valuation of $12 billion, marking its largest acquisition in nearly a decade, with a cash offer of $72 per share, representing a 46% premium over Avidity's last closing price [1] Group 1: Acquisition Details - The acquisition values Avidity at $12 billion in equity, but post-transaction, Avidity is expected to have approximately $1 billion in cash, leading to an enterprise value of about $11 billion [1] - Avidity's market capitalization reached around $6.8 billion at the time of the acquisition announcement [1] - The deal is expected to be completed in the first half of 2026, contingent upon the completion of a spin-off [3] Group 2: Strategic Implications - Avidity is developing experimental drugs for rare diseases, including a treatment for type 1 myotonic dystrophy, which aligns with Novartis's strategy to enhance its product portfolio [1][3] - Novartis is facing competition from generic drugs impacting three of its key products, including its best-selling heart drug, Entresto, highlighting the need for strategic acquisitions [3] - The acquisition is part of a broader trend in the biotechnology sector, where large pharmaceutical companies are acquiring smaller firms with innovative technologies to boost revenue [1] Group 3: Spin-off Plans - Prior to the transaction's completion, Avidity plans to spin off its early-stage precision cardiology project into a new company named SpinCo [2] - Avidity shareholders will receive shares in SpinCo or cash if assets are sold before the Novartis deal closes [2] Group 4: Regulatory Recognition - Avidity has received "Breakthrough Therapy" designation from the FDA for one of its drugs aimed at treating certain patients with Duchenne muscular dystrophy [4]