Why Avidity Biosciences Stock Blasted 42% Higher Today

Group 1 - Avidity Biosciences' share price surged by 42% following the announcement of its acquisition by Novartis, significantly outperforming the S&P 500's 1.2% increase [1] - Novartis will acquire Avidity for $72 per share in an all-cash transaction, representing a 46% premium over Avidity's closing price prior to the announcement [2] - The acquisition values Avidity at approximately $12 billion, with both companies' boards unanimously approving the deal [3] Group 2 - Novartis aims to enhance its neuroscience strategy through Avidity's innovative RNA therapeutics, specifically Antibody Oligonucleotide Conjugates (AOCs) targeting genetic neuromuscular disorders [4] - The acquisition is expected to close in the first half of 2026, pending regulatory approvals, while both companies will continue to operate independently [4] - Avidity was considered an attractive target due to its next-generation biotech capabilities [3]