Novartis to buy Chinook Therapeutics for up to $3.5bn

Novartis said on Monday that it has agreed to buy clinical stage biopharmaceutical company Chinook Therapeutics for up to $3.5bn.

Chinook has two high value, late-stage assets in development for the treatment of IgA nephropathy (IgAN), a rare progressive chronic kidney disease.

Under the terms of the transaction, Novartis will pay $40 per share for Chinook in cash, plus a plus a contingent value right with a value of up to $40.3bn - $4 per share - payable in cash upon the achievement of certain regulatory milestones.

Novartis said the deal is fully in line with its strategy to focus on innovative medicines and will significantly expand its renal portfolio, complementing the existing pipeline.

The company’s chief executive officer, Vas Narasimhan, said: "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."