Novartis acquires kidney disease innovator Chinook Therapeutics
Swiss pharmaceutical giant Novartis has wrapped up the previously announced $3.5 billion acquisition of Seattle-based biopharmaceutical firm Chinook Therapeutics, Inc. This deal propels Novartis deeper into the realm of kidney disease treatments, capitalizing on Chinook Therapeutics’ cutting-edge precision medicines.
Chinook Therapeutics’ promising pipeline, boasting two advanced assets, atrasentan and zigakibart (BION-1301), specifically targets Immunoglobulin A Nephropathy (IgAN). A pivotal readout for atrasentan, a noteworthy Phase 3 oral endothelin A receptor antagonist (ERA), is highly anticipated by Q4 2023.
Preliminary results spotlighted its effectiveness in minimizing proteinuria, and its potential applications in other rare kidney ailments are also under examination. Meanwhile, the anti-APRIL monoclonal antibody, zigakibart (BION-1301), which embarked on its Phase 3 journey for IgAN in July 2023, further enriches the portfolio.
Novartis wraps up $3.5bn acquisition of Chinook Therapeutics. Photo courtesy of Novartis AG.
From a financial standpoint, Chinook Therapeutics’ shareholders are set to gain substantially. They’re slated to pocket $40 in cash for every Chinook Therapeutics share they hold, aggregating to a whopping $3.2 billion. Furthermore, contingent upon specific regulatory achievements, there’s a potential bonus through a contingent value right (CVR), potentially pouring an additional $300 million into their coffers.
The initial announcement of this significant deal dates back to June 2023.
Speaking on the acquisition, Vas Narasimhan, CEO of Novartis, expressed his enthusiasm. He emphasized the combined potential of Novartis and Chinook Therapeutics in reshaping treatments for rare chronic kidney ailments. He also warmly welcomed the Chinook Therapeutics squad into the Novartis family, reiterating their collective mission to pioneer and reimagine medicine.