Avidity Biosciences (RNA) HR chief cashes out equity in Novartis deal
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Avidity Biosciences, Inc. reported that Chief Human Resources Officer Teresa McCarthy disposed of company equity in connection with the previously agreed merger with Novartis AG. The filing shows an issuer disposition of multiple stock option awards and 165,296 shares of Common Stock, including shares underlying previously reported restricted stock units.
According to the merger terms, each reported share of Common Stock was converted into the cash merger consideration of $72.00 per share. The stock options were canceled in exchange for a cash payment equal to the excess of the $72.00 merger price over their exercise price, indicating these were cash-settled, merger-related transactions rather than open-market trades.
Positive
- None.
Negative
- None.
Insider Trade Summary
8 transactions reported
Mixed
8 txns
Insider
McCarthy Teresa
Role
Chief Human Resources Officer
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Disposition | Stock Option (Right to Buy) | 106,000 | $0.00 | -- |
| Disposition | Stock Option (Right to Buy) | 65,000 | $0.00 | -- |
| Disposition | Stock Option (Right to Buy) | 57,500 | $0.00 | -- |
| Disposition | Stock Option (Right to Buy) | 108,000 | $0.00 | -- |
| Disposition | Stock Option (Right to Buy) | 54,000 | $0.00 | -- |
| Disposition | Stock Option (Right to Buy) | 78,000 | $0.00 | -- |
| Disposition | Stock Option (Right to Buy) | 50,000 | $0.00 | -- |
| Disposition | Common Stock | 165,296 | $0.00 | -- |
Holdings After Transaction:
Stock Option (Right to Buy) — 0 shares (Direct);
Common Stock — 0 shares (Direct)
Footnotes (1)
- The reported securities represent shares of Common Stock (inclusive of shares of Common Stock issuable upon settlement of previously reported restricted stock units) disposed of pursuant to the terms of the Agreement and Plan of Merger, dated as of October 25, 2025 (the "Merger Agreement"), among Novartis AG ("Novartis"), Ajax Acquisition Sub, Inc., an indirect wholly owned subsidiary of Novartis, and the Issuer. The reported Options were disposed of, pursuant to the Merger Agreement, in exchange for a cash payment equal to the excess of the merger consideration of $72.00 over the exercise price.
FAQ
What insider activity did Avidity Biosciences (RNA) report in this Form 4?
The Form 4 reports that Chief Human Resources Officer Teresa McCarthy disposed of Avidity Biosciences equity in connection with a merger. She transferred multiple stock option awards and 165,296 shares of Common Stock back to the issuer for cash consideration tied to the merger terms.
How were Avidity Biosciences (RNA) stock options treated in this insider transaction?
The reported stock options were canceled under the merger agreement and exchanged for cash. Each option generated a payment equal to the difference between the cash merger consideration of $72.00 per share and the option’s exercise price, effectively cashing out their intrinsic value.
What merger terms affected Teresa McCarthy’s Avidity Biosciences (RNA) holdings?
Her holdings were affected by the Agreement and Plan of Merger among Novartis AG, Ajax Acquisition Sub, Inc., and Avidity Biosciences. Under this deal, each share of Common Stock was converted into $72.00 cash, and outstanding options were paid out based on that same $72.00 merger price.
Who is the insider in this Avidity Biosciences (RNA) Form 4 filing?
The insider is Teresa McCarthy, Avidity Biosciences’ Chief Human Resources Officer. The Form 4 details her disposition of company stock and stock options to the issuer, executed pursuant to the company’s previously signed merger agreement with Novartis AG and its acquisition subsidiary.