Benzinga·2025-10-27 18:52Core Insights - Avidity Biosciences, Inc. is set to be acquired by Novartis AG for $12 billion in an all-cash deal, marking a significant biotech acquisition of the year [1] Group 1: Acquisition Details - The acquisition offer is priced at $72 per share, representing a 46% premium over Avidity's closing price on October 24 and a 62% premium to its 30-day volume-weighted average price [3] - Avidity will spin out its early-stage precision cardiology programs into a new publicly traded company, funded with $270 million in cash, allowing shareholders to receive equity in the new entity alongside the cash offer [3] Group 2: Strategic Rationale - The acquisition aligns with Novartis' strategy to enhance its neuroscience and rare disease portfolio, focusing on Avidity's late-stage AOC pipeline, which includes treatments for Duchenne muscular dystrophy, myotonic dystrophy type 1, and facioscapulohumeral muscular dystrophy [4] Group 3: Analyst Perspectives - H.C. Wainwright downgraded Avidity to Neutral from Buy, setting a price target of $72, reflecting the cash offer from Novartis and indicating no expectation of a competing bid [2][5] - The price forecast is based on a combination of a $92 per share estimate using a 25× multiple of projected 2034 earnings and a discounted cash flow value of $51 per share [5][6] Group 4: Recent Financial Performance - Avidity reported a second-quarter loss of $1.21 per share, which was worse than analysts' expectations of a $1.00 loss, although sales increased significantly to $3.85 million, up 88% year over year [7]