Avidity Biosciences (RNA) Soars to All-Time High on Looming $12-Billion Merger with Novartis

We recently published 10 Big Names Crushing Wall Street. Avidity Biosciences, Inc. (NASDAQ:RNA) is one of the top-performing stocks on Monday.

Shares of Avidity rallied to a new all-time high on Monday, as investors gobbled up shares following confirmation that it was set to merge with Novartis for a transaction worth $12 billion.

In intra-day trading, Avidity Biosciences, Inc. (NASDAQ:RNA) soared to as high as $70.38 before paring gains to end the day just up by 42.42 percent at $70 apiece.

In a statement over the weekend, Novartis said that it entered into an agreement with Avidity Biosciences, Inc. (NASDAQ:RNA) to acquire the latter at a price of $72 apiece, as it seeks to strengthen its neuroscience franchise. The acquisition will be made under Novartis’ newly formed subsidiary.

Prior to the closing of the merger, Avidity Biosciences, Inc. (NASDAQ:RNA) will transfer all early-stage precision cardiology programs and existing collaborations to its wholly owned subsidiary SpinCo.

The transfer will also include certain Avidity assets. One of its existing partners will get the first chance to negotiate the said assets before anyone else.

Meanwhile, shareholders will receive one share of SpinCo for every 10 RNA shares they own, or receive cash if Avidity chooses to sell SpinCo to another company.

Novartis and Avidity Biosciences, Inc. (NASDAQ:RNA) expect the merger to close in the first half of 2026. Until closing, they will continue to operate as separate and independent companies.

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Disclosure: None. This article is originally published at Insider Monkey.