Avidity Biosciences (RNA) Q3 2025 earnings summary

Executive summary

• Announced a definitive merger agreement for acquisition by Novartis for approximately $12 billion, with a planned spin-off of early-stage precision cardiology programs into a new public entity, SpinCo, and the transaction expected to close in the first half of 2026.

• Pipeline includes three programs in potentially registrational trials for rare neuromuscular diseases, with significant regulatory designations and upcoming data readouts in 2026 and 2028.

• Del-zota one-year data showed sustained muscle protection and reversal of disease progression in DMD44 patients.

• Completed major public and at-the-market equity offerings, raising over $837 million in the nine months ended September 30, 2025.

Financial highlights

• Cash, cash equivalents, and marketable securities totaled $1.9 billion as of September 30, 2025, bolstered by $651.4 million from a public offering and $185.5 million from stock sales.

• Collaboration revenue was $12.5 million for Q3 2025, up from $2.3 million in Q3 2024, mainly due to a $10 million milestone from Eli Lilly and contributions from Bristol Myers Squibb.

• Net loss for Q3 2025 was $174.4 million, compared to $80.4 million in Q3 2024; net loss for the nine months ended September 30, 2025 was $447.5 million, up from $220.0 million year-over-year.

• Research and development expenses rose to $154.9 million in Q3 2025, up from $77.2 million in Q3 2024, driven by increased clinical trial activity and manufacturing costs.

• General and administrative expenses increased to $46.3 million in Q3 2025, up from $23.1 million in Q3 2024, reflecting higher personnel and professional fees.

Outlook and guidance

• Cash position is expected to fund operations through mid-2028.

• No revenue from product sales is expected until regulatory approvals are obtained; future funding may include additional equity, debt, or collaborations if the merger is not completed.

• Key clinical milestones anticipated in 2026 and 2028, including pivotal data readouts and regulatory submissions for del-zota, del-desiran, and del-brax.