Avidity Biosciences leaps on news of $400 million financing

Avidity Biosciences (Nasdaq: RNA) has announced an oversubscribed $400 million private placement, with the news sending the US RNA-focussed biotech firm’s shares up 21.8% to $18.58 by mid-morning.

The proceeds aim to support advancement of the company’s three clinical-stage programs in three different rare diseases and pre-clinical research programs in rare skeletal muscle and rare cardiac diseases based on its proprietary antibody oligonucleotide conjugates (AOCs) technology platform. The proceeds from the financing are expected to fund operations into late 2026.

The financing includes participation from new and existing institutional investors, including Adage Capital Partners, Boxer Capital, Casdin Capital, Farallon, Janus Henderson Investors, RA Capital Management, RTW Investments, Wellington Management, as well as multiple other large investment management firms.