Research Collaboration and License Agreement and Securities Purchase Agreement with Bristol Myers Squibb Company

In November 2023, Avidity entered into a Research Collaboration and License Agreement (the “BMS Collaboration Agreement”) with Bristol Myers Squibb Company (“BMS”). In connection with the BMS Collaboration Agreement, the Company recognized revenue of $3.0 million and $3.8 million for the three months ended June 30, 2026 and 2025, respectively, and $22.6 million and $5.4 million for the six months ended June 30, 2026 and 2025, respectively. Revenue from R&D services performed in satisfaction of the performance obligation under the BMS Collaboration Agreement is $3.0 million and $3.8 million for the three months ended June 30, 2026 and 2025, respectively, and $7.6 million and $5.4 million for the six months ended June 30, 2026 and 2025, respectively. As of March 31, 2026, the Company recorded $15.0 million collaboration receivable upon the successful delivery of a development candidate under the BMS Collaboration Agreement. The related receivable was collected during the current period. As a result, the Company had no collaboration receivable outstanding as of June 30, 2026.

As of June 30, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations under the Company’s Third Party Agreements consisted solely of fixed consideration related to ongoing research and development services under the BMS Collaboration Agreement. The Company expects to recognize this remaining fixed consideration as revenue over the remaining research term as services are performed.

Company and contingent upon BMS efforts. Any variable consideration related to sales-based milestones (including royalties) will be recognized when the related sales occur as they were determined to relate predominantly to the license granted to BMS. The Company will re-evaluate the transaction price in each reporting period and as uncertain events are resolved or other changes in circumstances occur.

In April 2019, Avidity entered into a Research Collaboration and License Agreement (the “Lilly Agreement”) with Eli Lilly and Company (“Lilly”) for the discovery, development and commercialization of Antibody Oligonucleotide ConjugatesTM (“AOC”) products directed against certain targets in immunology and other select indications on a worldwide basis. The Company recognized no revenue for the three months ended June 30, 2026 and 2025, respectively, and recognized no revenue for the six months ended June 30, 2026 and 2025, respectively. In August 2025, Lilly paid Avidity $10.0 million as the result of the achievement of a clinical development milestone under the Lilly Agreement for a collaboration target. The Company assumed the Lilly Agreement as part of the Separation.

There was no collaboration receivable related to the Lilly Agreement as of June 30, 2026 and December 31, 2025. There was no deferred revenue related to the Lilly Agreement at June 30, 2026 and December 31, 2025, respectively.

The variable consideration related to the remaining milestone payments has not been included in the transaction price as these were fully constrained at June 30, 2026. As part of its evaluation of the constraint, the Company considered numerous factors, including that receipt of the milestones is outside the control of the Company and contingent upon Lilly efforts. Any variable consideration related to sales-based milestones (including royalties) will be recognized when the related sales occur as they were determined to relate predominantly to the license granted to Lilly. The Company will re-evaluate the transaction price in each reporting period and as uncertain events are resolved or other changes in circumstances occur.

The amounts received that have not yet been recognized as revenue are deferred on the Company's condensed balance sheet and will be recognized over the remaining research and development period until the performance obligation is satisfied. A reconciliation of the closing balance of deferred revenue related to the BMS Collaboration Agreement and the Lilly Agreement, for the six months ended June 30, 2026 and 2025 is as follows (in thousands):


Balance at January 1, 2025	$	58,948
Revenue recognized that was included in the balance at the beginning of the period		(1,573	)
Balance at March 31, 2025	$	57,375
Revenue recognized that was included in the balance at the beginning of the period		(3,847	)
Balance at June 30, 2025	$	53,528

Balance at January 1, 2026	$	50,330
Revenue recognized that was included in the balance at the beginning of the period		(4,635	)
Balance at March 31, 2026	$	45,695
Revenue recognized that was included in the balance at the beginning of the period		(3,004	)
Balance at June 30, 2026	$	42,691

The Company disaggregates collaboration revenue by significant collaboration partner, which reflects differences in the nature of the promised goods and services and the timing of revenue recognition. Collaboration revenue for the three and six months ended June 30, 2026 and 2025 was solely related to the BMS Collaboration Agreement.

Avidity retained all intellectual property and data that were not exclusively related to cardiology, except for certain platform‑related intellectual property that will initially be owned by the Company, subject to Avidity’s right to obtain an assignment of such intellectual property and to grant back a license to the Company. As a result, a substantial portion of the intellectual property and data material to the Company’s cardiology programs is owned by Avidity and remains subject to certain existing third‑party obligations. Accordingly, in connection with the Spin‑Off, the Company entered into a license agreement with Avidity (the “Avidity License Agreement”) pursuant to which the Company obtained rights to access and use such intellectual property and data for the continued development and commercialization of its cardiology programs.