Pharma: Novartis strengthens kidney pipeline with billion-dollar takeover

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With the acquisition, Novartis strengthens its pipeline primarily in the kidney disease area as Chinook develops two advanced compounds in this area. Specifically, this includes the treatment of immunoglobulin A nephropathy (IgAN), a progressive, rare kidney disease that primarily affects young adults and currently has no specific treatment options.

The value of the transaction is up to $3.5 billion. This includes a $40 cash offer per Chinook share and a contingent stock option up to $4 per share in cash. Novartis added in the press release that this conditional stock right will be paid in cash when certain regulatory milestones are reached.

Novartis expects to complete the transaction in the second half of 2023, subject to traditional closing conditions, including Chinook shareholder approval and regulatory approvals. Chinook will continue to operate as a separate and independent company until the transaction is completed.

Of the two compounds Chinook will later add to the Novartis pipeline, atrasentan is currently in Phase III development for IgAN. Registration results are expected in the fourth quarter of 2023. The candidate will also be further developed for other rare kidney diseases.

The second candidate, Zigakibart (BION-1301), is expected to begin a trial of IgAN treatment in the third quarter of 2023.

According to Novartis, IgAN affects 21 people per million people per year in the United States, with a higher incidence in Asian populations.

(SDA)

Source :Blick