Seattle-based biotech Chinook Therapeutics Inc. (Nasdaq: KDNY) is being acquired by the Swiss pharmaceutical giant Novartis AG (NYSE: NVS) for $40 per share, or $3.2 billion.
The companies announced the deal Sunday and expect it to close in the second half of this year, contingent on shareholder approval. Chinook shareholders could receive an additional up to $4 per share if the company's lead drug candidate, atrasentan, hits certain regulatory milestones, which would make the total deal price roughly $3.5 billion.
“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, CEO of Chinook Therapeutics, said in a release. “Through this merger, Novartis can apply its substantial resources to pursue broader development efforts and commercialization."
Chinook, founded in 2019, is focused on treatments for kidney diseases. Atrasentan is in phase 3 clinical trials for treatment of immunoglobulin A nephropathy, which results in inflammation that damages kidney tissues. The company expects to have data for those trials in the second half of this year. Atrasentan is in phase 2 trials for other kidney diseases. Chinook has another drug in development called BION-1301 that is also aimed at immunoglobulin A nephropathy.
The company had 214 employees at the end of last year, according to a regulatory filing.
Novartis, meanwhile, has over 90 products on the market, according to its website. The company says it has roughly 108,000 employees.
