Novartis To Acquire US Firm Chinook Therapeutics For $3.5 Billion

In a $3.5 billion transaction, Novartis will acquire US-based Chinook Therapeutics, a clinical-stage biopharmaceutical business. Upon reaching specific regulatory milestones, Chinook common investors will earn $3.2 billion and $0.3 billion in cash through contingent value rights. The agreement involves the merger of a recently established firm subsidiary with Chinook, which is currently developing two late-stage drugs to treat IgA nephropathy (IgAN), a rare, progressive chronic kidney disease.

Atrasentan, an oral endothelin A receptor antagonist (ERA) from Chinook, is currently being developed for the treatment of IgAN. Results are anticipated in 2023's fourth quarter. A Phase I/II trial is currently evaluating its anti-APRIL monoclonal antibody, zigakibart, for the same indication. In the third quarter of 2023, Phase III studies are anticipated to begin. The acquisition, according to Novartis, would broaden the company's renal portfolio and is consistent with its strategy of concentrating on innovative medications.

Novartis CEO Vas Narasimhan stated: “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. “We look forward to closing the deal, to a smooth transition for Chinook employees and to welcoming them to Novartis.” The acquisition will be completed in the second half of 2023, pending approval from Chinook's owners and any other governmental approvals.