Shares of Avidity Biosciences (RNA) surged 36% after reports of Novartis (NVS) interest in acquiring the company. Discussions are in early stages with no guarantee of a deal. Avidity focuses on RNA therapeutics, with clinical programs for rare genetic diseases. Novartis aims to expand its pipeline and strengthen its cardiovascular portfolio through the potential acquisition.

Novartis is eyeing Avidity to offset potential revenue losses from generic competition. Avidity has partnerships with Bristol Myers and Eli Lilly for cardiovascular and immunology therapies. Novartis previously acquired Anthos Therapeutics and Regulus Therapeutics to bolster its pipeline. Avidity’s stock performance has shown growth compared to the industry.

Avidity Biosciences currently carries a Zacks Rank #4 (Sell). Novartis’ interest in Avidity aligns with its strategy to expand its portfolio amid potential revenue challenges. Avidity’s focus on RNA therapeutics for rare genetic diseases makes it an attractive target for Novartis. The acquisition could significantly strengthen Novartis’ presence in the cardiovascular space.

Read more at Nasdaq: RNA Stock Moves More Than 30% in a Week: What’s Driving This Rally?