Novartis To Buy Chinook Therapeutics In Up To $3.5 Bln Cash Deal

(RTTNews) - Swiss drug major Novartis AG (NVS) announced Monday its agreement to acquire Seattle, Washington-based Chinook Therapeutics for a total value of up to $3.5 billion.

The deal includes $3.2 billion upfront or $40 per share in cash upon closing, plus a contingent value right with a value of up to $0.3 billion or $4 per share. This is payable in cash upon the achievement of certain regulatory milestones.

The transaction has been approved by Novartis and Chinook Boards, and is expected to close in the second half of 2023, subject to customary closing conditions.

The acquisition is fully in line with Novartis strategy to focus on innovative medicines and will significantly expand its renal portfolio, complementing the existing pipeline.

Chinook is a clinical stage biopharmaceutical company with two high-value, late-stage medicines in development for IgA nephropathy or IgAN, a rare, severe chronic kidney disease.

Novartis noted that the agreed deal would include atrasentan, an oral endothelin A receptor antagonist, in Phase 3 development for IgAN, and zigakibart, an anti-APRIL monoclonal antibody, entering Phase 3 for IgAN.

Vas Narasimhan, CEO of 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."

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