Avidity Biosciences (RNA) Moves 42.4% Higher: Will This Strength Last?

Core Insights - Avidity Biosciences, Inc. shares surged 42.4% to $70 following Novartis' agreement to acquire the company for up to $72.00 per share, valuing the deal at approximately $12 billion [2][1] - The acquisition will allow Novartis to access Avidity's neuroscience programs and RNA-targeting delivery platform, while Avidity plans to spin off its early-stage precision cardiology programs into a new entity called SpinCo [2] Financial Performance - Avidity is expected to report a quarterly loss of $1.09 per share, reflecting a year-over-year decline of 67.7%, with revenues projected at $2.5 million, a 6.8% increase from the previous year [3] - The consensus EPS estimate for Avidity has remained unchanged over the last 30 days, indicating a lack of upward revisions that typically correlate with stock price movements [4] Industry Context - Avidity is part of the Zacks Medical - Biomedical and Genetics industry, where Exact Sciences, a competitor, saw a 1.8% decline in its stock price, but has returned 20.7% over the past month [5] - Exact Sciences has experienced a 9.8% increase in its consensus EPS estimate over the past month, representing a significant year-over-year change of 147.6% [6]