Switzerland-based pharma major Novartis on 12 June announced that it has entered into an agreement to acquire Chinook Therapeutics, a Seattle-based clinical-stage biopharmaceutical company with two high-value, late-stage medicines in development for rare, severe chronic kidney diseases.
The agreed deal, subject to customary closing conditions, is fully in line with Novartis’ strategy to focus on innovative medicines and will significantly expand its renal portfolio, complementing the existing pipeline, the company said in a statement.
Chinook’s shareholders will receive $3.2 billion, or $40 per share, in cash under the agreed deal, plus a contingent value right worth up to $300 million, subject to regulatory approvals, Novartis said.
“IgA Nephropathy is a devastating disease mostly affecting young adults and potentially leading to dialysis or kidney transplantation. We are excited by this unique opportunity to address one of society’s most challenging healthcare issues, with the potential to bring additional much-needed treatment options to patients,” said Vas Narasimhan, CEO of Novartis. “We look forward to closing the deal, to a smooth transition for Chinook employees and to welcoming them to Novartis.”
Chinook’s pipeline includes two late-stage assets in clinical development to treat Immunoglobulin A Nephropathy (IgAN), a progressive, rare kidney disease that mostly affects young adults and currently lacks targeted treatment options. As many as three in 10 patients progress to kidney failure and dialysis within 10 years.