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14 handpicked stocks

RNA Stocks (M&A Targets) Could See Premium Valuations

Novartis's $12 billion acquisition of Avidity Biosciences underscores the high value of RNA-based treatments for rare diseases. This deal could spark a wave of similar acquisitions, creating opportunities for other biotech companies with innovative RNA platforms.

Author avatar

Han Tan | Market Analyst

Published on October 27

Your Basket's Financial Footprint

Market-cap breakdown for the 'Riding The RNA M&A Wave' basket, showing total market capitalisation and constituent weights.

Key Takeaways for Investors:
  • Large-cap dominance generally implies lower volatility and risk, with returns that tend to track the broader market.
  • Use this basket as a core, long-term holding rather than a short-term, speculative position.
  • Expect steady, long-term value growth; don't rely on rapid, explosive gains.
Total Market Cap
  • RNA: $6.36B

  • ALNY: $60.94B

  • IONS: $11.40B

  • Other

About This Group of Stocks

1

Our Expert Thinking

Novartis's £12 billion acquisition of Avidity Biosciences has created a ripple effect across the biotech sector. This premium deal signals that large pharmaceutical companies are willing to pay top dollar for innovative RNA-based therapeutics, particularly those targeting rare genetic diseases. We believe this could trigger a wave of similar acquisitions as competitors scramble to build their own RNA capabilities.

2

What You Need to Know

This group focuses on companies developing RNA-based treatments and gene therapies, operating in a high-growth but research-intensive market. These are typically clinical-stage biotechnology firms with innovative drug delivery platforms. The sector carries higher risk due to regulatory hurdles and lengthy development timelines, but offers significant upside potential if treatments reach market successfully.

3

Why These Stocks

Each company was selected for its promising RNA technology platform or pipeline of rare disease treatments that could make them attractive acquisition targets. Our analysts identified firms with innovative approaches to RNA interference, gene editing, and targeted therapeutics - the same areas that made Avidity so valuable to Novartis. These represent potential beneficiaries of ongoing industry consolidation.

Why You'll Want to Watch These Stocks

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M&A Fever is Building

The Novartis-Avidity deal has set a new benchmark for RNA biotech valuations. Other pharmaceutical giants are likely eyeing similar acquisitions to stay competitive in this rapidly evolving space.

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Premium Valuations Ahead

Companies with proven RNA platforms and promising pipelines could command significant premiums as acquisition targets. The £12 billion Avidity deal shows just how much big pharma is willing to pay for the right technology.

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First-Mover Advantage

Getting positioned before the next wave of deals could be crucial. These companies represent some of the most innovative approaches to treating previously untreatable genetic diseases, making them prime takeover candidates.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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