Novartis announced Monday that it entered an agreement to acquire Seattle-based Chinook Therapeutics for nearly $3.5 billion. The move will significantly boost the late-stage drug development lineup for the the Swiss drug maker with a major U.S. presence in East Hanover, giving it two high-value, late-stage medicines in development for rare, severe chronic kidney diseases.
Under the agreement, Chinook Therapeutics will merge with a newly formed subsidiary of Novartis.
As part of the agreement, holders of Chinook common stock will receive a cash payment of $3.2 billion, along with a contingent value rights of up to $300 million. This merger will enable Novartis to harness the potential of Chinook’s pipeline, which includes two late-stage assets in clinical development to treat Immunoglobulin A Nephropathy, a progressive, rare kidney disease that mostly affects young adults and currently lacks targeted treatment options.
Novartis aims to finalize the transaction in the second half of 2023, pending customary closing conditions.
This forward-thinking acquisition showcases Novartis’ dedication to advancing the field of nephrology and underscores its commitment to meeting the unmet medical needs of patients worldwide.