Novartis To Acquire Chinook Therapies in $3.5-Bn Deal
Novartis has agreed to acquire Chinook Therapeutics, a Seattle, Washington-based clinical-stage bio/pharmaceutical company, in a deal worth up to $3.5 billion ($3.2 billion upfront and $300 million in milestone payments).
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.
Under the agreement, which has been unanimously approved by the Boards of both companies, Novartis will acquire Chinook for a total value of up to $3.5 billion with the transaction being in the form of a merger of Chinook and a newly formed Novartis subsidiary. Holders of Chinook common stock would receive $3.2 billion ($40.00 per share) in cash upon closing, plus a contingent value right with a value of up to $300 million ($4.00 per share), payable in cash upon the achievement of certain regulatory milestones. The transaction is expected to close in the second half of 2023, subject to customary closing conditions, including approval by Chinook’s stockholders and receipt of regulatory approvals.
Source: Novartis