SCHEDULE: RA Capital Maintains 5.9% Stake in Avidity Biosciences

RA Capital Management and its affiliates reported continued beneficial ownership of 5.9% of Avidity Biosciences, Inc.'s common stock as of September 30, 2025.

Summary

• RA Capital Management, L.P., Peter Kolchinsky, Rajeev Shah, and RA Capital Healthcare Fund, L.P. (collectively, the "Reporting Persons") beneficially own 8,641,031 shares of Avidity Biosciences, Inc. common stock.
• This represents 5.9% of the company's outstanding common stock as of September 30, 2025.
• The ownership percentage is calculated based on 128,653,337 shares outstanding as of July 29, 2025, plus an additional 17,250,000 shares sold in a public offering on September 12, 2025.
• The Reporting Persons share both voting and dispositive power over all 8,641,031 shares.
• The securities were not acquired or held for the purpose of changing or influencing control of Avidity Biosciences, Inc.

Sentiment

Score: 6

Explanation: The filing is a routine disclosure of a significant institutional stake, which is generally neutral but can be interpreted as a vote of confidence. The mention of a recent public offering indicates capital raising activity, which is common for growth companies but can dilute existing shareholders.

Positives

• A significant institutional investor, RA Capital Management, maintains a substantial 5.9% stake in Avidity Biosciences, potentially signaling continued confidence in the company's long-term prospects.

Negatives

• NA

Risks

• The Reporting Persons disclaim beneficial ownership of the securities for purposes of Section 13(d) of the Act, other than for determining their obligations under Section 13(d), and the filing does not admit beneficial ownership for any other purpose.

Future Outlook

NA

Management Comments

• The Reporting Persons expressly disclaim status as a 'group' for purposes of this Schedule 13G.
• The Fund has delegated to RA Capital the sole power to vote and the sole power to dispose of all securities held in the Fund's portfolio, including the shares of the Issuer's Common Stock reported herein.
• Because the Fund has divested voting and investment power over the reported securities it holds and may not revoke that delegation on less than 61 days' notice, the Fund disclaims beneficial ownership of the securities it holds for purposes of Section 13(d) of the Act.
• RA Capital, Dr. Kolchinsky, and Mr. Shah disclaim beneficial ownership of the securities reported in this Schedule 13G other than for the purpose of determining their obligations under Section 13(d) of the Act, and the filing of this Schedule 13G shall not be deemed an admission that either RA Capital, Dr. Kolchinsky, or Mr. Shah is the beneficial owner of such securities for any other purpose.
• By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11.

Industry Context

This filing indicates continued institutional investment in Avidity Biosciences, a biotechnology company. Such filings are common in the biotech sector where specialized funds like RA Capital focus on life sciences companies. The mention of a recent public offering suggests the company is actively raising capital, a common practice for growth-stage biotech firms requiring significant funding for R&D and clinical trials.

Comparison to Industry Standards

• NA

Stakeholder Impact

• Shareholders: The continued significant stake by RA Capital Management could be viewed positively, indicating institutional confidence. The recent public offering, while raising capital, would have diluted existing shareholders.

Next Steps

• NA

Key Dates

Recommendation

This Schedule 13G filing is a routine disclosure of an institutional investor's beneficial ownership and does not contain new information that would fundamentally alter the investment thesis for Avidity Biosciences. RA Capital Management maintaining a 5.9% stake is a neutral to slightly positive signal of continued confidence. The mention of a recent public offering indicates the company is raising capital, which is typical for a biotech firm but also implies dilution. Without further operational or financial updates from the company, the filing itself does not warrant a change from a 'hold' position for a seasoned investor.

Keywords

Avidity Biosciences, RA Capital Management, Schedule 13G, beneficial ownership, common stock, institutional investor, Peter Kolchinsky, Rajeev Shah, healthcare fund, public offering