Novartis announced June 12 that it will acquire Chinook Therapeutics, a Seattle-based biopharmaceutical company that develops novel kidney medicines, for a total value of $3.5 billion.
The company's move to purchase Chinook Therapeutics falls in line with its strategy "to focus on innovative medicines and will significantly expand its renal portfolio, complementing the existing pipeline," the news release states.
The two therapies Chinook Therapeutics offers for kidney disease patients that will soon become part of Novartis' drug portfolio are both in phase 3 developments designed to treat Immunoglobulin A Nephropathy, also known as Berger's disease. Atrasentan is the company's oral endothelin A receptor antagonist, and its zigakibart drug is an anti-APRIL monoclonal antibody.
The deal is expected to close in late 2023 and upon closing Novartis plans to merge Chinook into a newly formed Novartis subsidiary.
"We are pleased that Novartis recognizes the significant value that the Chinook team has built with our pipeline of clinical and preclinical programs for patients with rare, severe chronic kidney diseases," Eric Dobmeier, president and CEO of Chinook Therapeutics said in its announcement of the deal. "We believe this transaction is great news for kidney disease patients and the programs we have built at Chinook. Through this merger, Novartis can apply its substantial resources to pursue broader development efforts and commercialization of atrasentan, zigakibart and other programs in our pipeline to build its global renal therapeutic area."
Chinook Therapeutics will continue to operate independently of Novartis until the deal is finalized.