Avidity Biosciences (RNA) AI Stock Analysis

• Market Cap: $10.67B
• Dividend Yield: N/A
• Average Volume (3M): 7.21M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.59
• Revenue Growth: 106.27%
• EPS Growth: -43.90%
• Country: US
• Employees: 391
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.27
• Shares Outstanding: 150,675,740
• 10 Day Avg. Volume: 9,068,169
• 30 Day Avg. Volume: 7,206,159
• PEG Ratio: 14.65
• Price to Book (P/B): 2.28
• Price to Sales (P/S): 297.77
• P/FCF Ratio: -10.54
• Enterprise Value/Market Cap: 0.39
• Enterprise Value/Revenue: 200.41
• Enterprise Value/Gross Profit: -35.67
• Enterprise Value/Ebitda: -7.03
• 1Y Price Target: $71.71
• Price Target Upside: 1.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): -4.32
• Revenue Forecast (FY): $15.32M

• Rating: 56 Neutral
• Price Target: $73.00 ▲(3.08% Upside)

The overall stock score for Avidity Biosciences is driven primarily by strong technical momentum, despite significant financial performance challenges. The lack of profitability and negative cash flow are major concerns, but the stock's current bullish trend provides a counterbalance. Valuation remains a concern due to the negative P/E ratio and absence of a dividend yield.

Positive Factors

Strong Revenue Growth

The company has shown significant revenue growth, indicating strong market demand and successful product development, which are crucial for long-term success.

Strategic Merger with Novartis

The merger with Novartis is expected to accelerate global reach and enhance the company's innovative pipeline, providing a solid foundation for future growth.

Sufficient Cash Reserves

Having sufficient cash reserves ensures operational stability and flexibility to invest in R&D, crucial for sustaining long-term innovation and growth.

Negative Factors

Profitability Challenges

Ongoing profitability challenges indicate high operational costs, which could hinder the company's ability to achieve sustainable financial health over time.

Negative Cash Flow

Negative cash flow reflects challenges in generating sufficient operational cash, potentially limiting the company's ability to invest in growth opportunities.

High Operating Costs

High operating costs relative to revenue can erode profitability, requiring strategic cost management to ensure long-term financial sustainability.

Avidity Biosciences Business Overview & Revenue Model

Company Description

Avidity Biosciences, Inc., a biopharmaceutical company, engages in the development of oligonucleotide-based therapies. It develops antibody oligonucleotide conjugates (AOC) that are designed to treat a range of serious diseases. The company's lead product candidate AOC 1001 is used for the treatment of myotonic dystrophy type 1, a rare monogenic muscle disease; AOC 1044 for the treatment of Duchenne Muscular Dystrophy; and AOC 1020 designed to treat facioscapulohumeral muscular dystrophy which are in preclinical stage. It also offers Lumizyme therapy for Pompe diseases. Avidity Biosciences, Inc. was incorporated in 2012 and is headquartered in San Diego, California.

How the Company Makes Money

Avidity Biosciences generates revenue through a combination of research and development collaborations, partnerships, and potential product sales. The company often enters into strategic collaborations with larger pharmaceutical companies, which may provide upfront payments, milestone payments upon the achievement of certain development stages, and royalties on future sales of any products that result from these partnerships. Additionally, Avidity may receive funding through government grants and public offerings, as well as through the commercialization of its proprietary therapies once they receive regulatory approval. The success of its revenue model is significantly influenced by the advancement of its product pipeline and the establishment of new partnerships within the biotechnology and pharmaceutical sectors.

Avidity Biosciences Financial Statement Overview

Summary

Avidity Biosciences demonstrates strong gross profit margins and revenue growth, but faces significant challenges with profitability and cash flow. The low debt levels provide some financial stability, yet the negative return on equity and operating cash flow highlight ongoing operational difficulties. The company needs to focus on improving profitability and cash flow to enhance its financial health.

Income Statement

Avidity Biosciences shows a strong gross profit margin of 92.41% in the TTM, indicating efficient cost management. However, the company is struggling with negative net profit margins and EBIT margins, reflecting significant operational losses. Revenue growth is positive at 20.19% in the TTM, suggesting some potential for future improvement.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.0043, indicating minimal leverage and financial risk. However, the return on equity is negative, reflecting ongoing losses and challenges in generating shareholder value. The equity ratio is strong, showing a solid capital structure.

Cash Flow

Avidity Biosciences has a negative operating cash flow, which is concerning for sustainability. The free cash flow growth rate is positive at 37.64% in the TTM, but the company still faces challenges in converting net income into cash flow, as indicated by the high free cash flow to net income ratio.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.87M	10.90M	9.56M	9.22M	9.33M	6.79M
Gross Profit	-117.26M	10.90M	7.46M	7.84M	-91.86M	-30.82M
EBITDA	-594.70M	-376.16M	-233.50M	-177.53M	-117.41M	-43.77M
Net Income	-549.79M	-322.30M	-212.22M	-174.00M	-118.01M	-44.35M
Balance Sheet
Total Assets	2.13B	1.56B	628.55M	638.80M	427.58M	333.90M
Cash, Cash Equivalents and Short-Term Investments	1.88B	1.50B	595.35M	610.73M	405.54M	328.14M
Total Debt	49.97M	6.80M	9.85M	10.69M	11.73M	938.00K
Total Liabilities	247.94M	138.94M	127.79M	60.73M	46.15M	27.68M
Stockholders Equity	1.89B	1.42B	500.76M	578.08M	381.43M	306.22M
Cash Flow
Free Cash Flow	-595.44M	-307.94M	-123.29M	-139.09M	-98.55M	-38.21M
Operating Cash Flow	-580.54M	-300.87M	-119.06M	-136.27M	-94.81M	-37.12M
Investing Cash Flow	-309.43M	-854.20M	-130.07M	-189.96M	-82.52M	-7.79M
Financing Cash Flow	869.80M	1.19B	93.86M	346.17M	176.32M	272.04M

Avidity Biosciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 70.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNA, the sentiment is Positive. The current price of 70.82 is above the 20-day moving average (MA) of 62.44, above the 50-day MA of 52.01, and above the 200-day MA of 37.85, indicating a bullish trend. The MACD of 6.06 indicates Negative momentum. The RSI at 80.57 is Negative, neither overbought nor oversold. The STOCH value of 85.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RNA.

Avidity Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PTCT	74 Outperform	$6.02B	8.76	―	―	97.54%	―
RNA	56 Neutral	$10.67B	―	-32.44%	―	106.27%	-43.90%
MRUS	52 Neutral	$7.28B	―	-51.57%	―	57.54%	-36.57%
RYTM	52 Neutral	$6.52B	―	-240.36%	―	54.92%	28.47%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IMVT	45 Neutral	$4.10B	―	-95.93%	―	―	-27.70%
CRSP	41 Neutral	$5.20B	―	-25.33%	―	-81.10%	-99.21%

Avidity Biosciences Corporate Events

Avidity Biosciences Reports Increased Revenue Amid Losses

Avidity Biosciences, Inc. is a biopharmaceutical company focused on developing RNA therapeutics called Antibody Oligonucleotide Conjugates (AOCs) to target diseases previously untreatable with such therapeutics. In its latest earnings report for the quarter ended September 30, 2025, Avidity Biosciences reported significant financial highlights, including increased collaboration revenue and a substantial net loss. The company saw its collaboration revenue rise to $12.5 million for the quarter, up from $2.3 million in the same period last year, driven by milestones achieved under agreements with partners like Eli Lilly. However, the company’s operating expenses also increased significantly, leading to a net loss of $174.4 million for the quarter, compared to a net loss of $80.4 million in the previous year. Despite the losses, Avidity Biosciences has maintained a strong cash position, with cash, cash equivalents, and marketable securities totaling $1.88 billion. Looking ahead, the company is optimistic about its financial stability, supported by its existing cash reserves and potential future financing activities, as it continues to advance its product candidates and development programs.

Avidity Biosciences Announces Merger with Novartis AG

On October 25, 2025, Avidity Biosciences announced a merger agreement with Novartis AG, under which Novartis will acquire Avidity for $72.00 per share, valuing the company at approximately $12 billion. The merger includes the separation of Avidity’s early-stage precision cardiology programs into a new entity, SpinCo, which will be led by Kathleen Gallagher. The acquisition will provide Novartis with access to Avidity’s RNA-targeting delivery platform and its late-stage clinical programs. The transaction, expected to close in the first half of 2026, requires regulatory and stockholder approvals and is anticipated to enhance Novartis’ neuroscience pipeline.

The most recent analyst rating on (RNA) stock is a Hold with a $72.00 price target. To see the full list of analyst forecasts on Avidity Biosciences stock, see the RNA Stock Forecast page.

Avidity Biosciences Delays Biologics License Application

On October 13, 2025, Avidity Biosciences announced a delay in the submission of its Biologics License Application for del-zota to the first quarter of 2026, following a pre-BLA meeting with the FDA. This delay is intended to provide additional non-clinical data to support the chemistry, manufacturing, and controls package, impacting the company’s timeline for regulatory approval.

The most recent analyst rating on (RNA) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on Avidity Biosciences stock, see the RNA Stock Forecast page.

Avidity Biosciences’ Phase 2 Study on AOC 1001: A Potential Game-Changer for DM1 Treatment

Study Overview: Avidity Biosciences Inc. is conducting a Phase 2 extension study titled A Phase 2 Extension Study to Evaluate the Long-Term Safety, Tolerability, Efficacy, Pharmacokinetics, and Pharmacodynamics of AOC 1001 Administered Intravenously to Adult Myotonic Dystrophy Type 1 (DM1) Patients. The study aims to assess the long-term effects of AOC 1001 on DM1 patients, focusing on safety and efficacy, which is crucial for advancing treatment options for this genetic disorder.

Avidity Biosciences Announces Major Stock Offering

On September 11, 2025, Avidity Biosciences announced an underwriting agreement to issue and sell 15,000,000 shares of its common stock at $40.00 per share, with underwriters purchasing at $37.70 per share. The offering, expected to close on September 15, 2025, could generate approximately $564.0 million, or $648.8 million if an additional option is exercised. The proceeds will support the development of Avidity’s clinical programs, commercial infrastructure, and research and development of its AOC platform.

The most recent analyst rating on (RNA) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on Avidity Biosciences stock, see the RNA Stock Forecast page.

Avidity Biosciences Amends Share Plan Amid Trial Success

On September 9, 2025, Avidity Biosciences‘ board approved an amendment to increase the number of shares in their Employment Inducement Incentive Award Plan. The company announced positive results from the EXPLORE44 and EXPLORE44-OLE trials, showing significant improvements in patients with DMD treated with delpacibart zotadirsen. The data revealed a reversal of disease progression and improved functional measures, with a notable increase in dystrophin production and reduction in creatine kinase levels. Avidity plans to submit a Biologics License Application to the FDA by the end of 2025, aiming for a 2026 launch, marking a significant step in their strategic goals for commercialization.

The most recent analyst rating on (RNA) stock is a Buy with a $96.00 price target. To see the full list of analyst forecasts on Avidity Biosciences stock, see the RNA Stock Forecast page.

Avidity Biosciences’ Promising Phase 3 Study on Del-desiran for DM1: What Investors Need to Know

Study Overview: Avidity Biosciences Inc. is conducting a Phase 3 Global Open-Label Extension Study titled A Global Phase 3 Open-Label Extension Study to Assess the Long-Term Safety, Tolerability, and Efficacy of Intravenous AOC 1001 for the Treatment of Myotonic Dystrophy Type 1. The study aims to evaluate the long-term safety, tolerability, and efficacy of the drug del-desiran (formerly AOC 1001) in treating Myotonic Dystrophy Type 1 (DM1), a significant neuromuscular disorder.

Avidity Biosciences’ Phase 3 Study on AOC 1020: A Potential Breakthrough for FSHD

Study Overview: Avidity Biosciences Inc. is conducting a Phase 3 study titled A Randomized, Double-blind, Placebo-controlled, Phase 3 Study to Evaluate the Efficacy and Safety of Intravenous AOC 1020 for the Treatment of Facioscapulohumeral Muscular Dystrophy (FSHD). The study aims to assess the effectiveness and safety of AOC 1020, a promising treatment for FSHD, a genetic muscle disorder. This study is significant as it could lead to a new therapeutic option for patients with this debilitating condition.

Avidity Biosciences Advances RNA Therapeutics with Strong Q2

Avidity Biosciences, Inc. is a biopharmaceutical company focused on developing RNA therapeutics, specifically Antibody Oligonucleotide Conjugates (AOCs™), to treat rare muscle diseases and other conditions. The company recently reported its second quarter 2025 financial results, highlighting significant advancements in its clinical programs and a robust financial position.