Novartis has partnered with Versant Ventures, a venture-capital firm, to form Borealis Biosciences, an independent, discovery-stage biotechnology company based in Vancouver, Canada, focused on developing xRNA-based medicines for kidney disease. 

Borealis stems from Novartis’ $3.5-billion acquisition of Chinook Therapeutics, a Seattle, Washington-based clinical-stage bio/pharmaceutical focused on developing therapeutics for kidney disease. Chinook was founded by Versant in 2019 and acquired by Novartis in 2023 for $3.2-billion upfront and up to $300 million in a contingent value right achievable upon certain milestones. Following the acquisition, Novartis leveraged the scientific potential of legacy Chinook early research talent, site facilities, and capabilities, with financing from Versant, to launch Borealis. 

With its acquisition of Chinook in 2023, Novartis gained two late-stage drug candidates (atrasentan and zigakibart) to treat immunoglobulin A nephropathy (IgAN), a type of kidney disease where antibodies build up in the kidneys and cause damage to the glomeruli (small filters inside the kidneys). 

Borealis’ 23,000-square foot operating research site, formerly leased by Chinook, includes wet labs for molecular and cellular biology, vivarium space, chemistry. and analytical capabilities. The initial 25-plus team is made up of researchers with expertise in kidney disease, translational systems biology and data sciences, translational biology, chemistry, drug metabolism and pharmacokinetics, pharmacology, and RNA research.  

Borealis received combined Series A financing of $150 million from Novartis and Versant, and Novartis has transferred certain employees and the former Chinook site in Vancouver to Borealis to enable the continuation of drug-discovery efforts by certain former researchers of Chinook. 

An additional part of this deal includes a near-term research funding agreement, which provides Novartis the option to acquire two future development-ready programs under pre-agreed terms to complement Novartis’ core strategic priorities in renal medicine and xRNA technology platforms. Borealis is eligible to receive up to $750 million in total consideration, including clinical and regulatory milestones. 

Source: Borealis Biosciences and Novartis