Insider Trading January 23, 2026

Avidity Biosciences CSO Executes Stock Sale Amid Novartis Acquisition

Insider transaction aligns with tax obligations as company advances Duchenne muscular dystrophy therapy and prepares for $12B buyout

By Maya Rios RNA
Avidity Biosciences CSO Executes Stock Sale Amid Novartis Acquisition
RNA

W. Michael Flanagan, Chief Scientific Officer at Avidity Biosciences, recently sold 6,534 shares valued at approximately $473,388 to fulfill tax requirements related to restricted stock units. Meanwhile, Avidity is rolling out a Managed Access Program for its drug targeting Duchenne muscular dystrophy and has agreed to be acquired by Novartis in a $12 billion cash deal, prompting analyst downgrades.

Key Points

  • W. Michael Flanagan, Avidity Biosciences' CSO, sold 6,534 shares to fulfill RSU tax withholding obligations, retaining direct ownership of over 85,000 shares.
  • Avidity inaugurated a Managed Access Program to provide investigational therapy delpacibart zotadirsen for Duchenne muscular dystrophy patients eligible under FDA treatment protocols.
  • Novartis plans to acquire Avidity Biosciences in a cash deal valued at roughly $12 billion, prompting analyst downgrades and target price revisions.

On January 21, 2026, W. Michael Flanagan, serving as Chief Scientific Officer at Avidity Biosciences Inc. (NASDAQ: RNA), completed a transaction involving the sale of 6,534 shares of the company's common stock. The trade fetched roughly $473,388, with each share priced at $72.45. This disposition of stock was not a discretionary sale but was undertaken specifically to satisfy tax withholding obligations tied to the vesting of Restricted Stock Units (RSUs) awarded to Flanagan. Following the transaction, his direct ownership stake in Avidity Biosciences stands at 85,093 shares.

In parallel developments, Avidity Biosciences has launched a Managed Access Program targeting patients with Duchenne muscular dystrophy (DMD) who have mutations amenable to exon 44 skipping. This investigational therapy, delpacibart zotadirsen, will be made accessible under an FDA-sanctioned treatment protocol to qualified patients across the United States through participating healthcare providers. Enrollment for the program is expected to commence by the end of the calendar year.

Additionally, a notable strategic development occurred as Novartis announced plans to acquire Avidity Biosciences for an estimated $12 billion in a cash transaction set at $72 per share. This announcement has triggered reevaluation among financial analysts; Chardan Capital Markets lowered its recommendation on Avidity's shares from Buy to Neutral and adjusted its price target downward from $75.00 to $72.00. Likewise, TD Cowen downgraded its rating from Buy to Hold, modifying the target price from $78.00 to $74.00. Despite this, TD Cowen retains a Hold stance, emphasizing that Avidity's Phase 2/3 del-brax FSHD biomarker cohort data remains on schedule for release in 2026.

These developments reflect both ongoing shifts within Avidity Biosciences' corporate trajectory and concurrent reassessments within financial markets regarding the firm’s outlook. The insider sale underscores typical tax management among executives amidst significant company events, while the Managed Access Program indicates advancing clinical initiatives. Meanwhile, the pending Novartis acquisition has injected fresh momentum and uncertainty into Avidity’s stock evaluation.

Risks

  • The acquisition by Novartis introduces potential integration risks and uncertainties that may affect Avidity’s operational and financial outlook.
  • Analyst downgrades reflect market reservations about near-term stock performance and valuation amid strategic transitions.
  • Efficacy and accessibility of the Managed Access Program depend on regulatory compliance and patient enrollment, which carry inherent clinical and operational uncertainties.

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