Shares of Dyne Therapeutics Inc. (DYN) jumped 42% on Monday morning after Novartis (NVS) agreed to acquire the company’s key competitor Avidity Biosciences (RNA).
According to Morgan Stanley, the acquisition provides positive read-through to Dyne, as reported by TheFly. Both Avidity and Dyne are advancing therapies for rare muscle diseases, myotonic dystrophy type 1 (DM1), Duchenne muscular dystrophy (DMD), and facioscapulohumeral muscular dystrophy (FSHD), and attempting targeted delivery of RNA into muscle.
Avidity has demonstrated the successful targeted delivery of RNA into muscle with its Antibody Oligonucleotide Conjugate platform, which is part of the Novartis acquisition. Dyne has also developed its FORCE platform to develop therapeutics that address the root cause of disease and deliver functional improvement for people living with neuromuscular disorders.
Morgan Stanley has kept an ‘Overweight’ rating and $48 price target on Dyne shares. The $48 price target implies a potential 180% upside to the stock’s closing price on Friday.
On Stocktwits, retail sentiment around DYN stock jumped from ‘bearish’ to ‘extremely bullish’ territory over the past 24 hours, while message volume while message volume rose from ‘low’ to ‘extremely high’ levels.
A Stocktwits user, however, opined that the current share value is too high.
Another sees the falling to about $20 later on Monday.
Novartis announced on Sunday that it will buy Avidity for $72 per share, following the separation of Avidity’s early-stage precision cardiology programs. The per share price implies a total equity value of $12 billion on a fully diluted basis. The transaction is expected to close in the first half of 2026.
DYN stock is up 3% this year but is down about 21% over the past 12 months.
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