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RNA Stock Moves More Than 30% in a Week: What's Driving This Rally?
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Key Takeaways
Avidity shares jumped 36% after reports that Novartis is interested in acquiring the biotech.
FT noted talks are in early stages with no guarantee of a deal and other suitors may emerge.
Avidity develops RNA therapies for rare muscular diseases and has major pharma partnerships.
Shares of Avidity Biosciences (RNA - Free Report) have soared 36% in the past month, all thanks to a report issued by the Financial Times (FT), which stated that pharma giant Novartis (NVS - Free Report) is interested in acquiring the company.
Per the article, the discussions for a potential deal were still at “an early stage” and there was “no guarantee” that it would be secured. The FT also stated that other suitors may express interest in acquiring RNA. Both Avidity and Novartis have declined to comment on the rumor.
San Diego-based Avidity Biosciences is a clinical-stage biotech developing novel RNA therapeutics. The company’s major clinical programs include del-desiran for myotonic dystrophy type 1 (DM1), del-brax for facioscapulohumeral muscular dystrophy (FSHD) and del-zota for Duchenne muscular dystrophy (DMD). It has also expanded into the precision cardiology space, with two new wholly-owned pipeline drugs, AOC 1086 and AOC 1072, both targeting two rare genetic cardiomyopathies for which there are currently no approved therapies.
Avidity also has partnerships with other pharma giants like Bristol Myers (BMY - Free Report) and Eli Lilly (LLY - Free Report) to develop novel therapies targeting cardiovascular and immunology indications, respectively. During the second quarter of 2025, the company generated $3.8 million (compared to $2 million) from collaboration revenues, primarily related to its deal with Bristol Myers.
RNA Stock Performance
Year to date, Avidity’s shares have surged 59% compared with the industry’s 4% growth.
Image Source: Zacks Investment Research
What’s Driving Novartis’ Reported Interest in Avidity Biosciences?
The idea behind the deal seems clear — Novartis is facing potential generic erosion for many of its top-selling drugs, like the heart failure medication Entresto, which is expected to lose protection this year. Other products like Gleevec/Glivec, Diovan and Exforge also face continued and increasing generic competition in major markets. A potential acquisition of Avidity would significantly expand Novartis’ existing pipeline into the rare muscular diseases space and strengthen its footprint in the cardiovascular space.
To protect itself against such potential revenue loss, Novartis has been tapping into smaller acquisitions. Earlier this year, it completed the acquisitions of heart drug biotech Anthos Therapeutics for up to $3.1 billion as well as kidney biotech Regulus Therapeutics for up to $1.7 billion.
Image: Bigstock
RNA Stock Moves More Than 30% in a Week: What's Driving This Rally?
Key Takeaways
Shares of Avidity Biosciences (RNA - Free Report) have soared 36% in the past month, all thanks to a report issued by the Financial Times (FT), which stated that pharma giant Novartis (NVS - Free Report) is interested in acquiring the company.
Per the article, the discussions for a potential deal were still at “an early stage” and there was “no guarantee” that it would be secured. The FT also stated that other suitors may express interest in acquiring RNA. Both Avidity and Novartis have declined to comment on the rumor.
San Diego-based Avidity Biosciences is a clinical-stage biotech developing novel RNA therapeutics. The company’s major clinical programs include del-desiran for myotonic dystrophy type 1 (DM1), del-brax for facioscapulohumeral muscular dystrophy (FSHD) and del-zota for Duchenne muscular dystrophy (DMD). It has also expanded into the precision cardiology space, with two new wholly-owned pipeline drugs, AOC 1086 and AOC 1072, both targeting two rare genetic cardiomyopathies for which there are currently no approved therapies.
Avidity also has partnerships with other pharma giants like Bristol Myers (BMY - Free Report) and Eli Lilly (LLY - Free Report) to develop novel therapies targeting cardiovascular and immunology indications, respectively. During the second quarter of 2025, the company generated $3.8 million (compared to $2 million) from collaboration revenues, primarily related to its deal with Bristol Myers.
RNA Stock Performance
Year to date, Avidity’s shares have surged 59% compared with the industry’s 4% growth.
Image Source: Zacks Investment Research
What’s Driving Novartis’ Reported Interest in Avidity Biosciences?
The idea behind the deal seems clear — Novartis is facing potential generic erosion for many of its top-selling drugs, like the heart failure medication Entresto, which is expected to lose protection this year. Other products like Gleevec/Glivec, Diovan and Exforge also face continued and increasing generic competition in major markets. A potential acquisition of Avidity would significantly expand Novartis’ existing pipeline into the rare muscular diseases space and strengthen its footprint in the cardiovascular space.
To protect itself against such potential revenue loss, Novartis has been tapping into smaller acquisitions. Earlier this year, it completed the acquisitions of heart drug biotech Anthos Therapeutics for up to $3.1 billion as well as kidney biotech Regulus Therapeutics for up to $1.7 billion.
Avidity Biosciences, Inc. Price
Avidity Biosciences, Inc. price | Avidity Biosciences, Inc. Quote
RNA’s Zacks Rank
Avidity currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Ranked (Strong Buy) stocks here.