The deal will give Novartis two late-stage medicines for the treatment of IgA nephropathy in the form of atrasentan, an oral endothelin A receptor antagonist, currently in Phase 3 development, and Zigakibart, a subcutaneously administered anti-APRIL monoclonal antibody
Chinook Therapeutics to be acquired by Novartis. (Credit: Novartis AG)
Novartis has agreed to acquire US-based clinical-stage biopharmaceutical company Chinook Therapeutics in an all-cash deal worth up to $3.5bn.
Listed on Nasdaq, Chinook Therapeutics is engaged in the discovery, development, and commercialisation of precision medicines for the treatment of kidney diseases.
Chinook Therapeutics has two late-stage medicines that are being developed for IgA nephropathy (IgAN), a rare, progressive, and severe chronic kidney disease.
The assets include atrasentan, an oral endothelin A receptor antagonist (ERA). The drug candidate is presently in Phase 3 development for IgAN with results anticipated in Q4 of this year.
The second candidate is Zigakibart (BION-1301), a subcutaneously administered anti-APRIL monoclonal antibody. Its Phase 3 trial in IgAN is expected to begin in Q3 2023.
The acquisition of Chinook Therapeutics aligns with Novartis’ plans to focus on new medicines and expand its renal portfolio, complementing its prevailing pipeline.
Novartis CEO Vas Narasimhan 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.”
Under the deal, the Switzerland-based pharma major will acquire Chinook Therapeutics for a total value of up to $3.5bn.
Shareholders of the US firm will be offered $40 per share or $3.2bn in total upfront payment at closing of the deal. In addition, they will be entitled to receive $4 per share in the form of contingent value rights (CVRs) upon achieving certain regulatory milestones of atrasentan.
Chinook Therapeutics president and CEO Eric Dobmeier said: “We believe this transaction is great news for kidney disease patients and the programmes we have built at Chinook.
“Through this merger, Novartis can apply its substantial resources to pursue broader development efforts and commercialisation of atrasentan, zigakibart (BION-1301) and other programmes in our pipeline to build its global renal therapeutic area.”
The transaction is anticipated to close in the second half of 2023, subject to Chinook Therapeutics’ stockholders’ approval and fulfilment of other standard conditions.