REG - RTW Biotech Opp. - Novartis to acquire Avidity Biosciences

RTW Biotech OpportunitiesAnnouncement

Mon 07:00

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RNS Number : 8527E  RTW Biotech Opportunities Ltd  27 October 2025

LEI: 549300Q7EXQQH6KF7Z84

27 October 2025

RTW Biotech Opportunities Ltd

Novartis to acquire Avidity Biosciences

·      Avidity to be acquired by Novartis for $72 per share, valuing it
at approximately $12 billion

·      Acquisition price represents a 46% premium to closing share price
on 24 October

·      As at 30 September, Avidity was RTW Bio's third-largest holding,
representing 7.0% of NAV

 

RTW Biotech Opportunities Ltd (the "Company" or "RTW Bio"), the London Stock
Exchange-listed investment company focused on identifying transformative
assets with high growth potential across the life sciences sector, is pleased
to note the announcement by portfolio company Avidity Biosciences, Inc.
("Avidity" Nasdaq: RNA) that it has entered into a definitive agreement to be
acquired by Novartis AG ("Novartis" SWX: NOVN).

 

Avidity is a clinical-stage biotech developing RNA therapeutics with three
clinical-stage programs for rare muscle diseases. Its lead candidate,
del-desiran, is in a Phase 3 trial for DM1. Avidity was the first to achieve
targeted RNA delivery into muscle tissue and is expanding its pipeline into
cardiology and immunology.

 

Avidity shareholders will receive $72 per share in cash at closing,
representing a premium of approximately 46% over Avidity's closing share price
on 24 October ($49.15) and approximately 62% over Avidity's 30-day volume
weighted average price ($44.42), valuing Avidity at approximately $12 billion
on a fully diluted basis. As at 30 September 2025, Avidity was RTW Bio's
third-largest holding, representing 7.0% of NAV.

 

Prior to the closing of the merger, Avidity will transfer to SpinCo, currently
a wholly owned subsidiary of Avidity, the early-stage precision cardiology
programs and collaborations of Avidity. Avidity shareholders will receive (1)
a distribution of one share of SpinCo for every ten shares of Avidity they
hold and/or (2) a pro rata cash distribution of the proceeds received by
Avidity prior to the closing if certain SpinCo assets are, or SpinCo itself
is, sold to a third party. SpinCo is expected to begin trading as a new public
company following the spin-off.

 

Rod Wong, CIO of RTW Investments, said, "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 IPO. 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."

 

Avidity's announcement can be found here
(https://investors.aviditybiosciences.com/2025-10-26-Avidity-Biosciences-Enters-into-Agreement-to-be-Acquired-by-Novartis-AG)
.

 

Enquiries:

 RTW Investments, LP - Investment Manager  +44 (0)20 7959 6362

 Oliver Kenyon                             biotechopportunities@rtwfunds.com

 Woody Stileman

 Krisha McCune (Investor Relations)

 Cadarn Capital - PR & IR Partner

 Lucy Clark (PR)                           +44 (0)7984 184 461 / lucy@cadarncapital.com

 David Harris (Distribution)               +44 (0)7368 883 211 / david@cadarncapital.com

 Deutsche Numis - Joint Corporate Broker   +44 (0)20 7260 1000

 Freddie Barnfield

 Nathan Brown

 BofA Securities - Joint Corporate Broker  +44 (0)20 7628 1000

 Edward Peel

 Alex Penney

 Altum (Guernsey) Limited                  +44 (0)1481 703 100

 Joanna Duquemin Nicolle

 Sadie Morrison

 

About RTW Biotech Opportunities Ltd:

RTW Biotech Opportunities Ltd (LSE: RTW) is an investment fund focused on
identifying transformative assets with high growth potential across the
biopharmaceutical and medical technology sectors. Driven by a long-term
approach to support innovative businesses, RTW Biotech Opportunities Ltd
invests in companies developing next-generation therapies and technologies
that can significantly improve patients' lives. RTW Biotech Opportunities Ltd
is managed by RTW Investments, LP, a leading healthcare-focused
entrepreneurial investment firm with deep scientific expertise and a strong
track record of supporting companies developing life-changing therapies.

Visit the website at www.rtwfunds.com/rtw-biotech-opportunities-ltd
(https://www.rtwfunds.com/rtw-biotech-opportunities-ltd/)  for more
information.

 

***********

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