Pharma Focus Europe

Novartis Successfully Concludes Acquisition of Chinook Therapeutics

Monday, August 14, 2023

Novartis has successfully concluded its acquisition of Chinook Therapeutics, Inc., a biopharmaceutical company headquartered in Seattle, WA. The acquisition, valued at a potential USD 3.5 billion, is aligned with Novartis' strategic focus on advancing precision medicines for kidney diseases.

Chinook Therapeutics has a notable pipeline that includes two advanced-stage assets aimed at treating Immunoglobulin A Nephropathy (IgAN): atrasentan and zigakibart (BION-1301). Atrasentan, an oral endothelin A receptor antagonist (ERA), is currently in Phase 3 development for IgAN, with pivotal results expected by Q4 2023. It has demonstrated significant potential in reducing proteinuria and is also being explored for other rare kidney conditions. Zigakibart (BION-1301), an anti-APRIL monoclonal antibody administered subcutaneously, entered Phase 3 development for IgAN in July 2023.

Vas Narasimhan, M.D., CEO of Novartis, expressed his excitement about the completion of this substantial transaction. He emphasized the combined resources and expertise that will be harnessed to drive forward the development of these promising treatments, ultimately benefiting individuals afflicted by rare and severe chronic kidney diseases. Narasimhan warmly welcomed the addition of the Chinook team to Novartis, recognizing the expansion of their renal portfolio as part of their ongoing commitment to transforming medicine.

Under the terms of the agreement, shareholders of Chinook will receive USD 40.00 in cash for each Chinook share, totaling USD 3.2 billion. Furthermore, an additional USD 4.00 in cash per Chinook share is on the table through a contingent value right (CVR) structure, contingent upon achieving specific regulatory milestones. This CVR arrangement has the potential to contribute an extra USD 300 million in total contingent consideration.

Thermo Fisher Scientific - mRNA ServicesWorld Orphan Drug Congress 2024World Vaccine Congress Europe 2024Advanced Therapies USA 2024