Avidity Biosciences (RNA) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition strengthens presence in neuromuscular diseases, expands RNA technology platform, and delivers first-in-disease pipeline for DM1 and FSHD, targeting significant unmet needs.

• Adds three late-stage neuromuscular programs, leveraging expertise in rare diseases and prior experience in SMA.

• Advances xRNA strategy with a unique antibody oligonucleotide conjugate platform for muscle RNA delivery.

• Supports global expansion of the neuroscience pipeline and leverages innovative science in RNA delivery.

• Aligns with capital allocation priorities, focusing on value-creating bolt-ons in core therapeutic areas.

Financial terms and conditions

• All outstanding shares acquired for $72 per share in cash, a 46% premium to the prior closing price and a 62% premium over the 30-day VWAP, valuing the company at $12 billion fully diluted, with an enterprise value of $11 billion at closing.

• Stockholders will also receive consideration for the separation of the SpinCo business.

• Closing expected in the first half of 2026, subject to SpinCo separation, regulatory, and stockholder approvals.

Synergies and expected cost savings

• Commercial, medical, and R&D synergies anticipated, leveraging existing rare disease infrastructure and commercial footprint.

• Limited cost synergies expected due to biotech nature; main benefits are commercial and pipeline execution.

• Expected to drive substantial shareholder returns and value creation over time.

• Acquisition expected to accelerate the development and commercialization of RNA therapeutics for rare neuromuscular diseases.