Novartis to Acquire Chinook Therapeutics for Up to $3.5 Billion to Expand Kidney Disease Portfolio

Intelligent Finance APP learned that Swiss pharmaceutical giant Novartis (NVS.US) plans to acquire Chinook Therapeutics (KDNY.US), a biopharmaceutical company located in Seattle, Washington, for up to $3.5 billion. The deal includes a prepayment of $3.2 billion, or $40 per share in cash, and contingent value rights worth up to $300 million, or $4 per share, which will be paid in cash upon achieving certain regulatory milestones.

This acquisition is fully in line with Novartis' strategy of focusing on innovative drugs and will significantly expand its renal product portfolio, complementing the existing product line.

The acquisition has been approved by the boards of both companies and is expected to be completed in the second half of 2023.

Chinook Therapeutics, the acquired company, has developed two drugs, Atrasentan and Zigakibart, which have entered phase three clinical trials. These drugs are mainly used to treat rare and severe chronic kidney diseases (IgA nephropathy), providing more options for patients with this condition. Novartis CEO Vas Narasimhan stated that this acquisition addresses one of the most challenging healthcare issues in society, offering a unique opportunity for younger patients.