By Mauro Orru
Novartis agreed to acquire clinical-stage biopharmaceutical company Chinook Therapeutics for up to $3.5 billion, in a deal that will expand its portfolio of kidney disease treatments.
The Swiss pharmaceutical company said Monday that it would merge Seattle, Washington-based Chinook Therapeutics with a newly formed Novartis subsidiary, with holders of Chinook common stock receiving $3.2 billion in cash, plus a contingent value right of up to $300 million.
The deal will hand Novartis exposure to Chinook’s pipeline for kidney disease treatments. These include atrasentan and zigakibart to treat Immunoglobulin A Nephropathy, a rare kidney disease that affects mostly young adults, with as many as three in 10 patients progressing to kidney failure and dialysis within 10 years.
Atrasentan is currently in Phase 3 development, while a Phase 3 trial for zigakibart is expected to start in the third quarter.
Novartis expects to close the transaction in the second half of the year, subject to customary closing conditions.
Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94
This post was originally published on Market Watch
