Stocks/RNA

RNA

Atrium Therapeutics, Inc.
Healthcare·Biotechnology
$13.00
$222M market cap
Claude Rating
8/10STRONG BUY
Revenue
$36.8M
Free Cash Flow
$-571.6M
Rev Growth
+1148.3%
FCF Margin
-1552.5%
P/FCF
--
EV/FCF
--
Fwd EV/EBITDA
--
Fair Value
$55.00
Upside
+323.1%

Atrium Therapeutics, Inc., a biopharmaceutical company, focuses on delivering ribonucleic acid (RNA) therapeutics to the heart to transform the care for people living with cardiomyopathies. The company's development stage product candidates include ATR 1072, a siRNA-based therapy targeting PRKAG2 for the treatment of PRKAG2 syndrome; and ATR 1086, a siRNA-based therapy targeting PLN for the treatment of PLN cardiomyopathy. It also focuses on pipeline to treat a range of genetic and cardiac disea

2-Year Price History

$13.09-11.3%
$13$14$14$15volFeb 26Mar 26Mar 26Apr 26Apr 26May 26May 26

Quarterly Financials & Projections

Quarterly Waterfall ($ M)
PeriodRevEBITDAOpInNIOCFFCFCapExCashDebtSharesROICIntCovEV/EBITDA
Est2027-Q45.0-250.0---245.0---240.0-7.0-1,456----------
Est2027-Q34.0-248.0---244.0---240.0-6.4-1,216----------
Est2027-Q23.5-245.0---241.5---238.0-6.3-975.7----------
Est2027-Q13.0-234.0---231.0---225.0-6.0-737.7----------
Est2026-Q42.5-220.0---217.5---212.5-5.5-512.7----------
Est2026-Q32.0-210.0---208.0---204.0-5.0-300.2----------
Est2026-Q23.0-195.0---192.0---189.0-5.4-96.2----------
Est2026-Q12.5-180.0---177.5---175.0-5.092.9----------
Act2026-Q119.6-17.1-17.3-16.6-31.1-33.2-2.1267.92.717.1<-999%----
Act2025-Q40.9-231.9-254.5-237.1-169.8-175.3-5.51,69794.6137.7-73.0%----
Act2025-Q312.5-173.4-188.8-174.4-156.2-160.1-3.91,87650.0137.9-48.1%----
Act2025-Q23.9-170.3-171.1-157.3-199.7-203.0-3.31,1835.1129.6-81.1%----
Act2025-Q11.6-130.7-131.5-115.8-124.8-128.6-3.81,3806.0129.2-52.8%----
Act2024-Q43.0-120.3-121.0-102.3-99.9-103.8-3.91,5026.8128.5-43.6%----
Act2024-Q32.3-97.4-98.1-80.4-65.6-67.3-1.71,5897.6123.4-32.5%----
Act2024-Q22.0-81.9-82.6-70.8-65.0-65.5-0.51,2998.4106.9-35.1%----
Act2024-Q13.5-76.6-77.2-68.9-70.4-71.3-0.9915.99.287.2-55.1%----
Act2023-Q42.2-66.1-66.7-60.416.515.6-0.9595.49.976.1-114.2%----
Act2023-Q32.8-58.1-58.6-52.4-36.8-37.7-0.9542.610.674.1-92.0%----
Act2023-Q22.3-52.1-52.6-47.0-49.8-50.4-0.6576.59.571.4-70.2%----
Act2023-Q12.2-57.2-57.6-52.4-49.0-50.8-1.8586.310.170.4-75.5%----
Act2022-Q42.8-52.8-53.2-50.5-39.2-40.0-0.9610.710.757.3-64.6%----
Act2022-Q32.5-44.6-44.9-43.6-32.0-31.9-0.1405.611.353.1-137.3%----
Act2022-Q22.2-46.0-46.3-45.7-35.6-36.9-1.3398.211.849.9-141.7%----
Act2022-Q11.8-34.2-34.5-34.2-29.6-30.3-0.8397.111.948.3-102.9%----

AI Analysis

LLM Evaluations

Claude8/10STRONG BUYFV: $55.00

This is a merger arbitrage situation, not a fundamental investment. Novartis has agreed to acquire Avidity at $72.00/share in cash, yet the stock trades at ~$14.80 — an 80%+ discount to deal price. This extraordinary spread implies the market assigns only ~15-20% probability to deal completion. While regulatory and ROFN risks are real, Novartis is a sophisticated acquirer with deep antitrust experience, and the AOC platform validated by multiple clinical readouts provides strategic rationale. Even in a deal-break scenario, $1.7B in cash (~$12/share on 138M diluted shares) provides a meaningful floor. The risk/reward is heavily skewed: ~$57 upside to deal price vs ~$3 downside to cash floor. The SpinCo (Bryce Therapeutics) distribution provides additional optionality. The massive spread suggests the market is either mispricing the deal probability or there is material non-public information suggesting deal failure — but absent concrete evidence of the latter, this represents a compelling asymmetric opportunity.

Catalyst Novartis merger completion (expected mid-2026) at $72.00/share plus SpinCo distribution would deliver ~4-5x return from current levels. Regulatory clearance milestones and shareholder vote are key near-term catalysts that should narrow the arb spread.
Risk Deal failure — if antitrust regulators block the acquisition or if ROFN partner complications derail the merger, the stock would likely fall to $8-15 range (near cash per share), and the $450M termination fee obligation would further impair the company's financial position. The 80%+ spread exists for a reason.
Trend
DETERIORATING
Mgmt
6/10
Quarter
4/10
Exp. Move
-2.0%

Valuation & Metrics

Market Stats

Price$13.00
Market Cap$222M
Enterprise Value$-43M
P/S Ratio6.0x
P/FCF--
EV/FCF--
FCF Margin (TTM)-1552.5%
FCF Yield-257.0%
Dividend Yield (TTM)--
Annual Dilution-86.8%
CurrencyUSD

TTM Financial Snapshot

Revenue$36.8M
Net Income$-585.5M
Free Cash Flow$-571.6M

Revenue Growth (YoY)+1148.3%
EBITDA Margin-1610.1%
Net Margin-1590.3%
FCF Margin-1552.5%
CapEx % of Revenue40.3%
SBC % of Revenue217.6%
ROIC-695.3%
WC Change % Rev42.8%
Interest Coverage--

DCF Fair Value Estimate

$-146.00
-1223.1% upside
Fair Enterprise Value$-25.0B
− Net Debt$-265M
= Fair Equity$-2.5B
Revenue Growth30.0% → 8.0%
FCF Margin-1552.5% → 20.0%
Discount Rate18.0%
Terminal EV/FCF25.0x

Forward Outlook & Risk

Short Interest

Short % of Float21.7%
Short Shares3.4M
Days to Cover8.7
Change (vs Prior)+13.6%
Short % Float History
21.70%-77.20pp
0.0%20.0%40.0%60.0%80.0%100.0%120.0%140.0%04-3007-1509-1511-1401-1504-30

Options

Call IV (ATM)--
Put IV (ATM)--
ATM Spread38.2%
Call $OI (near money)$49K
Put $OI (near money)$3K
ATM ExpirySeptember 18, 2026 (119D)
ATM Strike$20.0
Major Expirations3
Near-money chain · September 18, 2026
StrikeCall Bid/AskCall OIPut Bid/AskPut OI
$20.00$51.00/$56.001--/$5.000
$25.00$46.00/$51.000--/$5.0040
$30.00$41.00/$46.000--/$5.0015
$35.00$36.00/$41.000--/$0.1038
$40.00$31.00/$36.000--/$0.05142
$45.00$26.00/$31.0010--/$0.05572
$50.00$21.00/$26.000--/$0.0522
$55.00$16.00/$21.00533--/$5.0024
Snapshot: 2026-05-22

Forward Projections & Estimates

NTM Revenue Growth-72.8%
Forward FCF Margin-7805.0%
Forward EBITDA Margin-8050.0%
Forward P/FCF--
Forward EV/FCF--
Forward Int. Coverage--
Model Risk Score10/10
Bankruptcy Odds12%
Est. Borrow Rate15.0%
Terminal EV/FCF25.0x
LT Growth15.0%
LT FCF Margin20.0%

Employees

Headcount511
Revenue / Employee$72,049
Gross Profit / Employee$-201,478

Cash Runway

5.6months
CRITICAL

Institutional Ownership

Headline & net flow

NET BUYING

In Q1 2026 so far (quarter still filing), institutions are net buyers — bought 81.8% of float, sold 0.0%. 22 filers moved >1% of shares (22 buying, 0 selling).

Net flow · Q1 2026still filing
+81.8% of float (net)
Bought 81.8% · Sold 0.0%
164 filers reported (last quarter: 367)

Ownership composition

Active
70.7%
143 filers
hedge / family / endowment
Retail funds
Fidelity, Schwab, 401(k)
Passive
11.3%
4 filers
Vanguard, iShares, SPDR
Market makers
0.3%
6 filers
Citadel, Susquehanna
Insiders
Form 4 — latest per insider
Not enough quarterly ownership history to chart yet.

Top holders

Fund$ valueCost basisΔ QoQΔ YoYα lifeFund AUM
PRICE T ROWE ASSOCIATES INC /MD/$20.8M$13.37+$20.8M+$20.8M$864.93B
BlackRock, Inc.Passive$16.1M$13.37+$16.1M+$16.1M$5.69T
RA CAPITAL MANAGEMENT, L.P.$11.6M$13.37+$11.6M+$11.6M$9.44B
TIG Advisors, LLC$8.1M$13.37+$8.1M+$8.1M$2.09B
Pentwater Capital Management LP$8.1M$13.37+$8.1M+$8.1M$14.07B
O'Connor Alternative Investments LLC$7.7M$13.37+$7.7M+$7.7M$1.17B
Sessa Capital IM, L.P.$7.4M$13.37+$7.4M+$7.4M$5.26B
GOLDMAN SACHS GROUP INC$4.7M$13.37+$4.7M+$4.7M$760.93B
FARALLON CAPITAL MANAGEMENT LLC$4.7M$13.37+$4.7M+$4.7M$15.27B
GEODE CAPITAL MANAGEMENT, LLCPassive$4.3M$13.37+$4.3M+$4.3M$1.61T
683 Capital Management, LLC$4.0M$13.37+$4.0M+$4.0M$1.02B
Bellevue Group AG$3.5M$13.37+$3.5M+$3.5M$4.20B
STATE STREET CORPPassive$3.4M$13.37+$3.4M+$3.4M$2.89T
Weiss Asset Management LP$3.2M$13.37+$3.2M+$3.2M$4.24B
CANTOR FITZGERALD, L. P.$3.2M$13.37+$3.2M+$3.2M$2.75B
BALYASNY ASSET MANAGEMENT LLC$3.1M$13.37+$3.1M+$3.1M$48.01B
Squarepoint Ops LLC$3.1M$13.37+$3.1M+$3.1M$46.27B
Arbiter Partners Capital Management LLC$3.1M$13.37+$3.1M+$3.1M$147M
MILLENNIUM MANAGEMENT LLC$2.6M$13.37+$2.6M+$2.6M$127.40B
ADAGE CAPITAL PARTNERS GP, L.L.C.$2.5M$13.37+$2.5M+$2.5M$64.61B
Cost basis is a volume-weighted estimate from accumulation periods within our 13F history; holders who built their position before our window started will show a stale basis. % above the cost basis is the unrealized gain at the current price.

Trading behavior

Smart-money alpha (lifetime, %/qtr)BEARISH
Holders
-0.94%
avg per quarter
Holders (ex-self)
excl. this stock
Buyers (this Q)
-0.94%
153 buyers · $0.18B in
Sellers (this Q)
+0.00%
0 sellers · $0.00B out
alpha coverage: 96% of $ has a lifetime-alpha record
Holder behavior (holder profile)source: holder
On big dips (−10%+)
-5.7%
how holders react when this stock falls
On quiet Qs
-3.6%
−10% to +10% baseline
On rallies (+10%+)
-8.3%
how they react when this stock rises
Holders' portfolio flow this Q
+101.9%
inflows — adds are organic
Sellers' portfolio flow this Q
+0.0%
Sellers' overall flow ~ flat.

Top-5 holders · 35.2%

PRICE T ROWE ASSOCIATES INC /MD/--
BlackRock, Inc.--
RA CAPITAL MANAGEMENT, L.P.--
TIG Advisors, LLC--
Pentwater Capital Management LP--
Put / call ratio: 4.09 (+366.2% QoQ) net bearish options

Top Holders Over Time

5-year share-count history (top 10 holders by peak, incl. exited) + price

Not enough holder history to plot.

Related Stocks

Investors who own this also own

Stocks held by the same active managers as this one, ranked by score — how much more often these appear together than random chance (1× = baseline). Excludes index ETFs and market makers; minimum 3 shared holders.

TickerNameCo-holdersScore
HOLXHologic, Inc.372.18×

Analyst Coverage

Analyst Coverage
Price Targets
Last Quarter (1 analysts)$25.009230.0%
Last Year (1 analysts)$25.009230.0%
Current Price$13.00

Corporate

Order Flow (FINRA, ~3w lag)

51.3%retail
20.8%dark
week of 2026-04-13
10%20%30%40%50%26-0326-0326-0326-0326-0326-0426-04retail (non-ATS)dark (ATS)
Off-exchange volume from FINRA. Retail = non-ATS (wholesaler PFOF + broker internalization). Dark = ATS (dark-pool crossing networks, institutional). Lit-exchange = remainder.

Filing Risk Analysis

Filing Risk Scores

Avidity Biosciences (RNA): Strategic Exit via Novartis Merger Cloaks Massive Operational Cash Burn and Dilutive Financing

Overall Risk
6/10
Fraud
2/10
Dilution
8/10
Insolvency
4/10
Earnings Overstated
3/10
Hidden Liabilities
7/10
Legal
5/10
Audit Warnings
3/10
Hidden Upside
9/10
Contextually Acceptable
8/10

Counter-Thesis

Counter-Thesis & Recent News

📰 Recent News

In late 2025, Novartis announced a definitive agreement to acquire Avidity Biosciences for approximately $12 billion ($72.00 per share) in cash. While the deal validates the AOC platform, several analysts (Chardan, TD Cowen, and RBC Capital) downgraded the stock to 'Neutral' or 'Hold' in late 2025 and early 2026, noting that the stock is now trading near the acquisition price, effectively capping further upside. Additionally, the company reported a massive FY2025 net loss of $684.6 million on meager revenues of just $18.8 million, highlighting a widening gap between R&D spend and commercial viability.

🐻 Bear Case

The bear case centers on 'merger arbitrage' risks and the potential for the Novartis deal to fail under regulatory scrutiny or due to due-diligence hurdles, which would cause the stock to crater back to pre-acquisition levels. From a fundamental standpoint, Avidity remains deep in the red with an accumulated deficit of $1.6 billion and a burn rate that expanded by 40% year-over-year. Skeptics argue the current $11B+ valuation is detached from reality given the lack of a commercial-stage product and the 'leapfrog' potential of competitors like Dyne Therapeutics, which may deliver superior efficacy in the DM1 market.

🚩 Red Flags

Safety signals remain a persistent concern; historical data for del-zota (DMD) showed occurrences of anaphylaxis and infusion-related reactions that led to patient dropouts. Furthermore, the Phase 1/2 MARINA trial for del-desiran reported two serious adverse events (SAEs), one of which was drug-related. Recent SEC filings also reveal notable insider selling, with over 58,000 shares ($4.23 million) offloaded by top executives in the last quarter, signaling a possible lack of confidence in further appreciation beyond the Novartis offer.

⚔️ Competitive Threats

Avidity faces intense pressure from established giants like Sarepta Therapeutics and Alnylam Pharmaceuticals, but the most direct threat comes from Dyne Therapeutics. Analysts suggest Dyne’s DYNE-101 could potentially outperform Avidity's del-desiran in the Myotonic Dystrophy Type 1 (DM1) space. In the DMD market, Sarepta’s existing approvals for exon-skipping therapies create a high barrier to entry and limited market share opportunities for Avidity's late-stage candidates.

💬 Customer Sentiment

Sentiment among institutional investors has shifted from aggressive growth to cautious holding. While the medical community is 'intrigued' by the dystrophin production data, patient advocacy groups remain wary of the safety profile regarding infusion reactions. The consensus 'Hold' rating from over 12 major firms reflects a sentiment that the 'easy money' has been made and that the stock is currently a high-risk play on merger completion rather than clinical breakthroughs.