Avidity Biosciences (RNA) Soars 42% on $12-Billion Novartis Merger

We recently published 10 Stocks With Easy 20-40% Gains. Avidity Biosciences, Inc. (NASDAQ:RNA) is one of the last week's best-performing stocks.

Avidity Biosciences climbed by 42.1 percent week-on-week, as investors gobbled up shares after confirming a $12 billion merger plan with Novartis AG.

Earlier in the week, Novartis said it entered into an agreement with Avidity Biosciences, Inc. (NASDAQ:RNA) to acquire the latter through its newly formed subsidiary at a price of $72 apiece, as it seeks to strengthen its neuroscience franchise.

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 other potential bidders.

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.