Avidity Biosciences, Inc. Announces Closing of Upsized Public Offering of Common Stock, Including Full Exercise of Underwriters' Option to Purchase Additional Shares

Rhea-AI Summary

Avidity Biosciences (NASDAQ: RNA) has successfully closed its upsized public offering of 17,250,000 shares of common stock at $40.00 per share, including the full exercise of the underwriters' option for additional shares. The offering generated gross proceeds of $690.0 million.

The company plans to use the proceeds to advance its three late-stage clinical programs, build commercial inventory for multiple potential launches, expand commercial infrastructure, and progress research and development of its AOC™ (Antibody Oligonucleotide Conjugates) platform. The offering was managed by Leerink Partners, J.P. Morgan, TD Cowen, Cantor, and Wells Fargo Securities as joint bookrunners.

Positive

• Substantial capital raise of $690.0 million strengthens balance sheet
• Full exercise of underwriters' option indicates strong investor demand
• Proceeds will support multiple late-stage clinical programs and potential product launches
• Funding secured for commercial infrastructure expansion and R&D advancement

Negative

• Significant shareholder dilution from 17.25 million new shares
• Additional offering expenses and underwriting discounts will reduce net proceeds

Insights

Biotechnology Financial Analyst

Avidity Biosciences secures $690M in upsized public offering, strengthening financial position for late-stage clinical programs and commercialization preparations.

Avidity Biosciences has successfully closed an upsized public offering that raised $690 million in gross proceeds through the sale of 17.25 million shares at $40.00 per share. The offering included the full exercise of the underwriters' option to purchase additional shares, indicating strong investor demand for the company's equity.

This substantial capital infusion significantly strengthens Avidity's financial position and extends its operational runway. The company has explicitly outlined its capital allocation strategy, focusing on three critical areas: advancing its three late-stage clinical programs, building commercial inventory for multiple potential product launches, and expanding commercial infrastructure. Additionally, funds will support continued research and development of its innovative Antibody Oligonucleotide Conjugates (AOCs™) platform technology.

The successful completion of this offering with participation from top-tier investment banks including Leerink Partners, J.P. Morgan, and TD Cowen signals strong institutional confidence in Avidity's technology platform and clinical pipeline. For a biopharmaceutical company approaching potential commercial stage, this capital raise provides crucial resources needed to navigate the capital-intensive transition from clinical development to commercialization.

The timing of this financing is strategically important as it allows Avidity to adequately prepare for multiple potential product launches without needing to return to capital markets in the near term. This reduces future dilution risk while giving the company operational flexibility to execute on its clinical and commercial objectives.

SAN DIEGO, Sept. 15, 2025 /PRNewswire/ -- Avidity Biosciences, Inc. (Nasdaq: RNA), a biopharmaceutical company committed to delivering a new class of RNA therapeutics called Antibody Oligonucleotide Conjugates (AOCs™), today announced that it has closed its previously announced underwritten public offering of 17,250,000 shares of its common stock, including 2,250,000 shares sold pursuant to the underwriters' full exercise of their option to purchase additional shares, at a price to the public of $40.00 per share. The gross proceeds to Avidity from the offering, before deducting the underwriting discounts and commissions and other offering expenses, were $690.0 million. All of the shares sold in the offering were sold by Avidity.

Avidity intends to use the net proceeds from this offering, together with its existing cash, cash equivalents and marketable securities, to advance the development of its three late-stage clinical programs, to build appropriate commercial inventory levels to support multiple potential launches, to expand its commercial infrastructure, to progress research and development associated with its AOC platform, and for working capital and general corporate purposes.

Leerink Partners, J.P. Morgan, TD Cowen, Cantor and Wells Fargo Securities acted as joint bookrunning managers for the offering.

The securities described above were offered by Avidity pursuant to a shelf registration statement that became automatically effective upon filing with the Securities and Exchange Commission (SEC). A final prospectus supplement and the accompanying prospectus relating to this offering have been filed with the SEC. The offering was made only by means of a prospectus and prospectus supplement that form a part of the registration statement. Copies of the final prospectus supplement and the accompanying prospectus relating to this offering may be obtained from: Leerink Partners LLC, Attention: Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, by telephone at (800) 808-7525, ext. 6105, or by email at syndicate@leerink.com, J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com, TD Securities (USA) LLC, 1 Vanderbilt Avenue, New York, NY 10017, by telephone at (855) 495-9846 or by email at TD.ECM_Prospectus@tdsecurities.com, Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, 6th Floor, New York, New York 10022, or by email at prospectus@cantor.com, or Wells Fargo Securities, LLC, 90 South 7th Street, 5th Floor, Minneapolis, MN 55402, by telephone at (800) 645-3751 (option #5), or by email at WFScustomerservice@wellsfargo.com. Electronic copies of the final prospectus supplement and accompanying prospectus are also available on the website of the SEC at http://www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About Avidity

Avidity Biosciences, Inc.'s mission is to profoundly improve people's lives by delivering a new class of RNA therapeutics - Antibody Oligonucleotide Conjugates (AOCs™). Avidity is revolutionizing the field of RNA with its proprietary AOCs, which are designed to combine the specificity of monoclonal antibodies with the precision of oligonucleotide therapies to address targets and diseases previously unreachable with existing RNA therapies. Utilizing its proprietary AOC platform, Avidity demonstrated the first-ever successful targeted delivery of RNA into muscle and is leading the field with clinical development programs for three rare muscle diseases: myotonic dystrophy type 1 (DM1), Duchenne muscular dystrophy (DMD) and facioscapulohumeral muscular dystrophy (FSHD). Avidity is also advancing two wholly-owned precision cardiology development candidates addressing rare genetic cardiomyopathies. In addition, Avidity is broadening the reach of AOCs with its advancing and expanding pipeline including programs in cardiology and immunology through key partnerships. Avidity is headquartered in San Diego, CA.

Forward-Looking Statements

Avidity cautions readers that statements contained in this press release regarding matters that are not historical facts are forward-looking statements. These statements are based on the company's current beliefs and expectations. Such forward-looking statements include, but are not limited to, statements regarding Avidity's anticipated use of proceeds from the public offering. The inclusion of forward-looking statements should not be regarded as a representation by Avidity that any of its plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties associated with market conditions, as well as risks and uncertainties inherent in Avidity's business described in prior press releases and in filings with the SEC, including under the heading "Risk Factors" in Avidity's most recent annual report on Form 10-K and any subsequent filings with the SEC. Avidity cautions readers not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and Avidity undertakes no obligation to update such statements to reflect events that occur or circumstances that arise after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Investor Contact:
Kat Lange
(619) 837-5014
investors@aviditybio.com 

Media Contact: 
Kristina Coppola
(619) 837-5016
media@aviditybio.com 

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SOURCE Avidity Biosciences, Inc.

FAQ

How much did Avidity Biosciences (RNA) raise in its public offering?

Avidity Biosciences raised $690.0 million in gross proceeds through the public offering of 17,250,000 shares at $40.00 per share.

What will RNA use the proceeds from the offering for?

The proceeds will be used to advance three late-stage clinical programs, build commercial inventory for launches, expand commercial infrastructure, progress AOC platform R&D, and for working capital and general corporate purposes.

Who were the underwriters for Avidity Biosciences' public offering?

Leerink Partners, J.P. Morgan, TD Cowen, Cantor, and Wells Fargo Securities acted as joint bookrunning managers for the offering.

How many additional shares were sold through the underwriters' option?

The underwriters exercised their full option to purchase an additional 2,250,000 shares of common stock.

What is Avidity Biosciences' main technology platform?

Avidity Biosciences develops Antibody Oligonucleotide Conjugates (AOCs™), which represent a new class of RNA therapeutics.