{"id":21819,"date":"2023-06-13T00:57:28","date_gmt":"2023-06-13T04:57:28","guid":{"rendered":"https:\/\/ifintechworld.com\/uncategorized\/novartis-buys-chinook-for-3-5-billion-in-race-to-treat-rare-kidney-disease\/"},"modified":"2023-06-13T00:57:28","modified_gmt":"2023-06-13T04:57:28","slug":"novartis-buys-chinook-for-3-5-billion-in-race-to-treat-rare-kidney-disease","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=21819","title":{"rendered":"Novartis buys Chinook for $3.5 billion in race to treat rare kidney disease"},"content":{"rendered":"
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\u00a9 Reuters. FILE PHOTO: The company’s logo is seen at the new cell and gene therapy factory of Swiss drugmaker Novartis in Stein, Switzerland, November 28, 2019. REUTERS\/Arnd Wiegmann\/File Photo<\/span>
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By Ludwig Burger<\/p>\n

(Reuters) -Novartis said it has agreed to acquire U.S. biotech firm Chinook Therapeutics for up to $3.5 billion to boost its late-stage drug development line-up, raising the stakes in the race for a rare kidney disease treatment.<\/p>\n

Seattle-based Chinook’s shareholders will receive $3.2 billion, or $40 per share, in cash under the agreed deal, plus a contingent value right worth up to $300 million, depending on certain regulatory achievements, Novartis said on Monday.<\/p>\n

The upfront payment represents a premium of 66.7% to Chinook’s Friday closing price. Chinook’s shares were at $40.1 in premarket trading on Monday.<\/p>\n

Novartis CEO Vas Narasimhan is eager to raise the prospect of future blockbuster drugs after leading a push to slash costs and reshape the Swiss drugmaker to focus on fewer therapeutic areas and the most promising geographic markets.<\/p>\n

Chinook, whose shares closed at $23.99 on Friday, has a leading compound designed to treat IgA Nephrophathy, or IgAN, a rare disease that can lead to kidney failure in young adults which has attracted a range of developers and is already the target of drug candidate developed by Novartis. <\/p>\n

Narasimham has previously said he would look primarily at deal targets worth less than $5 billion.<\/p>\n

The transaction is expected to close in the second half of 2023, Novartis said in a statement.<\/p>\n

Chinook expects to see the pivotal readout in the fourth quarter of this year of a clinical trial in the third and last stage of development of oral drug candidate atrasentan to treat IgAN.<\/p>\n

Chinook is also working on zigakibart, another experimental IgAN treatment that is injected, and plans to start a Phase 3 trial in the third quarter of 2023.<\/p>\n

Narasimhan scored a major win this year when breast cancer drug Kisqali, one of two new drugs crucial to the group’s sales growth, was shown to help a wider patient group in a study.<\/p>\n

The other drug hopeful is iptacopan, which is being trialled against a number of rare genetic disorders, including IgAN and another kidney disease.<\/p>\n

Companies working on potential IgAN treatments include Roche, Vera Therapeutics, Ionis, Omeros (NASDAQ:) and unlisted HI-Bio.<\/p>\n

IgAN is a progressive autoimmune disease that mostly affects young adults and which can lead to kidney failure that requires dialysis or organ transplantation. No targeted treatment options are available, Novartis said.<\/p>\n

In the United States, IgAN affects up to 21 people per million per year, with a higher rate among Asian populations. IgAN is the most common cause of kidney failure in Caucasian young adults, Novartis added. <\/p>\n

Novartis is set to become more dependent on its drug development fortunes as it plans to spin off its generic drugs division Sandoz in the second half of 2023.<\/p>\n

Chinook shares slumped, but quickly recovered, last month when short-seller Muddy Waters (NYSE:) said it was betting on the stock to fall because atrasentan was unlikely to reach market maturity.<\/p>\n

Muddy Waters said last week it remained short on Chinook. <\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a9 Reuters. FILE PHOTO: The company’s logo is seen at the new cell and gene therapy factory of Swiss drugmaker Novartis in Stein, Switzerland, November 28, 2019. REUTERS\/Arnd Wiegmann\/File Photo By Ludwig Burger (Reuters) -Novartis said it has agreed to acquire U.S. biotech firm Chinook Therapeutics for up to $3.5 billion to boost its late-stage […]<\/p>\n","protected":false},"author":1,"featured_media":5023,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[1],"tags":[83],"class_list":["post-21819","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-uncategorized","tag-featured","post_format-post-format-video"],"yoast_head":"\nNovartis buys Chinook for $3.5 billion in race to treat rare kidney disease | iFintechWorld<\/title>\n<meta name=\"description\" content=\"\u00a9 Reuters. 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