Novartis has signed an agreement to acquire Chinook Therapeutics. Chinook Therapeutics is a Seattle-based biopharmaceutical company in clinical-stage development of two high-value drugs for rare, severe chronic kidney disease. Approval results for one of the compounds are expected in the fourth quarter of 2023. The second compound is a monoclonal anti-antibody for which the start of the Phase 3 trial is planned for the third quarter of 2023. The new business will significantly expand Novartis' renal portfolio and complement its existing pipeline.
“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.” said Vas Narasimhan, M.D., CEO of the Swiss pharmaceutical company Novartis. “We look forward to closing the deal, to a smooth transition for Chinook employees and to welcoming them to Novartis”.
Chinook's pipeline includes two llate-stage assets in clinical development to treat Immunoglobulin A Nephropathy (IgAN), a progressive, rare kidney disease that mostly affects young adults and currently lacks targeted treatment options. Up to three out of ten patients experience kidney failure and dialysis within ten years. Chinook has extensive expertise in modeling and understanding kidney disease, as well as a promising early pipeline for treating a range of severe kidney diseases.
Under the agreed transaction, which was unanimously approved by the boards of directors of both companies, Novartis will acquire Chinook for a total consideration of up to $3.5 billion. The acquisition will take the form of a merger of Chinook and a newly formed Novartis subsidiary. Under the terms of the merger agreement, holders of Chinook common stock will receive $3.2 billion in cash and a contingent value right worth up to $300 million upon closing of the transaction, subject to the achievement of certain regulatory milestones. The acquisition is expected to close in the second half of 2023, subject to customary closing conditions, including approval by Chinook's shareholders and receipt of regulatory approvals.
IgAN is a progressive, rare kidney disease that mostly affects young adults and currently lacks targeted treatment options. In IgAN, autoimmune reaction to an abnormal form of IgA results in formation of immune complexes that deposit in the kidney. These immune complexes trigger inflammation and kidney damage leading to progressive loss of renal function. In the U.S., IgAN affects up to 21 people per million per year, with higher incidence in Asian populations. IgAN is the most common cause of kidney failure in Caucasian young adults. Availability of new treatments targeting different disease pathways are transforming the treatment landscape for patients with IgAN and offer the prospect that patients with IgAN do not develop end stage kidney disease in their lifetime.
