Novartis has entered into an agreement to acquire Chinook Therapeutics, a Seattle, WA, based clinical stage biopharma company, for a total value of up to $3.5 billion with the transaction being in the form of a merger of Chinook and a newly formed Novartis subsidiary. Chinook will receive $3.2 billion in cash upon closing, plus up to $0.3 billion based on the achievement of certain regulatory milestones.
 
The acquisition adds two late-stage medicines in development for rare, severe chronic kidney diseases, significantly expanding Novartis renal portfolio. Atrasentan, an oral endothelin A receptor antagonist (ERA), currently in Phase 3 development for IgAN, has shown significant reductions in proteinuria. Immunoglobulin A Nephropathy (IgAN) is a progressive, rare kidney disease that mostly affects young adults and currently lacks targeted treatment options. 

Atrasentan is also in early-stage development for other rare kidney diseases. Zigakibart (BION-1301) is a subcutaneously administered anti-APRIL monoclonal antibody; a Phase 3 trial in IgAN is expected to start 3Q23.
 
“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 Novartis. “We look forward to closing the deal, to a smooth transition for Chinook employees and to welcoming them to Novartis.”
 
The transaction is expected to close in the second half of 2023, subject to customary closing conditions.