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.

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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 for more information.

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The information in this announcement may include forward-looking statements, which are based on the current expectations and projections about future events, and in certain cases can be identified by the use of terms such as "may", "will", "should", "expect", "anticipate", "project", "estimate", "intend", "continue", "target", "believe" (or the negatives thereon) or other variations thereon or comparable terminology. These forward-looking statements, as well as those included in any related materials, are subject to risks, uncertainties and assumptions about the Company and/or its underlying investments, including, among other things, the development of the applicable entity's business, trends in its operating industry, expected use of financing proceeds and future capital expenditures and acquisitions. In light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur.