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RTW Biotech Opportunities Ltd on Monday noted that Swiss pharmaceutical major Novartis AG has definitively agreed to buy portfolio company Avidity Biosciences Inc. RTW, a Guernsey-based investor in the life sciences sector, said Avidity stockholders will receive $72 per share in cash upon the deal’s closing. This represents an approximate 46% premium to Avidity’s $49.15 per share closing price on Friday, and values the California-based clinical-stage biotechnology firm at around $12 billion. Shares in RTW were 3.3% higher at $1.76 each on Monday morning in London. RTW said Avidity, which is developing RNA therapeutics for rare muscle diseases, represents 7.0% of its net asset value and is RTW’s third-biggest holding. It expects Avidity’s subsidiary SpinCo to begin trading as a new public company, following its spin-off as part of the deal. Basel, Switzerland-based pharmaceutical company Novartis announced on Sunday that it had agreed to purchase Avidity. ‘Avidity was the first to achieve targeted RNA delivery into muscle tissue and is expanding its pipeline into cardiology and immunology,’ RTW noted. It explained that before the acquisition closes, Avidity will transfer to SpinCo, with Avidity shareholders receiving one SpinCo share per ten Avidity shares, and/or cash from Avidity’s proceeds ‘if certain SpinCo assets are, or SpinCo itself is, sold to a third party’. ‘Avidity’s acquisition by Novartis represents a successful conclusion to a relationship begun when RTW led Avidity’s crossover financing round in 2019, ahead of its 2020 [initial public offering],’ commented RTW’s Chief Investment Officer Rod Wong. ‘This transaction marks the fifth take-out from RTW Bio’s portfolio announced since 30 June, following deals for Verona, Alcyone, Merus, and Akero. Each acquisition reflects strong conviction in differentiated science and late-stage clinical potential. ‘Novartis’s acquisition of Avidity underscores the strategic value of RNA therapeutics in neuromuscular disease and the urgency among large pharma to secure assets that can drive growth beyond upcoming patent expiries.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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