Novartis, a global pharmaceutical giant, has finalized its deal to buy Chinook Therapeutics, a biotech company that specializes in developing precision medicines for kidney diseases. The deal is worth up to USD 3.5 billion, including USD 3.2 billion in cash upfront and up to USD 300 million in additional cash payments based on certain regulatory milestones.
On 12 June 2023, Novartis revealed that it had reached a deal to purchase Chinook Therapeutics, a clinical-stage biopharmaceutical business with offices in Seattle, Washington, and two high-value, late-stage drugs being developed for uncommon, severe chronic kidney illnesses. The deal, which is valued at up to USD 3.5 billion, is in line with Novartis’ strategy to strengthen its renal portfolio and enhance its existing pipeline.
Under the merger agreement, which has been approved by both companies’ boards, Novartis will pay USD 3.2 billion (USD 40.00 per share) in cash to Chinook’s shareholders at closing, as well as up to USD 0.3 billion (USD 4.00 per share) in cash contingent on achieving certain regulatory milestones. The transaction is expected to close in the second half of 2023, subject to customary closing conditions, such as obtaining regulatory approvals and the consent of Chinook’s owners. Until then, Chinook will operate as a separate and independent entity.
“We are excited to complete this important transaction and look forward to leveraging our combined resources and expertise to further advance the development of these promising treatments for the benefit of patients with rare, severe chronic kidney diseases. We welcome the Chinook team to Novartis as we expand our renal portfolio and continue our journey to reimagine medicine.”
– Vas Narasimhan, M.D., CEO of Novartis
Chinook has two promising drugs in late-stage clinical trials for Immunoglobulin A Nephropathy (IgAN), a rare kidney disease that causes inflammation and scarring of the kidneys. One of them is atrasentan, an oral drug that blocks a protein that causes proteinuria, or excess protein in the urine. The other is zigakibart (BION-1301), an injectable drug that targets a molecule that stimulates the production of IgA antibodies. Both drugs have the potential to slow down or prevent kidney failure in IgAN patients.
