PepGen, Dyne rise after Novartis' $12 bln deal to buy rival Avidity

Shares of drug developer PepGen PEPG.O up 21% at $5.53, while Dyne Therapeutics DYN.O rise 37.5% at $23.54

Rival Avidity Biosciences RNA.O on Sunday agreed to be acquired by Swiss drugmaker Novartis NOVN.S for about $12 billion in cash to bolster its portfolio of treatments for rare muscle disorders

Pepgen and Dyne are also currently developing drugs to treat rare muscle disorders such as myotonic dystrophy type 1

"We anticipate DYN to trade materially higher tomorrow given similar platform, not materially behind RNA and $2.4b cap"- RBC Capital Markets

Including session moves, DYN up 1.8% and PEPG up 47.8% YTD