Novartis Completes $3.5-Bn Acquisition of Chinook Therapeutics
Novartis has completed its $3.5-billion acquisition of Chinook Therapeutics, a Seattle, Washington-based clinical-stage bio/pharmaceutical company. The acquisition was announced in June (June 2023).
Chinook’s pipeline includes two late-stage drug candidates (atrasentan and zigakibart) to treat immunoglobulin A nephropathy (IgAN), a rare kidney disease that mostly affects young adults.
Atrasentan is an oral drug in Phase III development for IgAN with a pivotal readout expected in the fourth quarter of 2023. Atrasentan is also in early-stage development for other rare kidney diseases. Zigakibart is a subcutaneously administered monoclonal antibody, and a Phase III trial in IgAN is expected to start in the fourth quarter of 2023.
With the closing, Chinook stockholders will receive $40.00 in cash per Chinook share (total of $3.2 billion), plus up to a further $4.00 in cash per Chinook share, through a contingent value right, upon the achievement of certain regulatory milestones, representing a potential additional $300 million in aggregate contingent consideration.