Swiss biopharma giant Novartis announced Monday it plans to buy Seattle-based Chinook Therapeutics for $3.2 billion, marking another blockbuster acquisition for the biotech industry in the Seattle region.
Founded in 2019, Chinook is developing therapies for rare, severe chronic kidney disorders. Its lead experimental drug is atrasentan, being tested in phase 3 studies for IgA Nephropathy (IgAN) and other conditions. It also has zigakibart, another drug designed for IgAN treatment that will undergo phase 3 trials later this year.
“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.” Vas Narasimhan, M.D., CEO of Novartis, said in a statement.
Shares of Chinook surged more than 50% on Monday morning following the acquisition announcement. The deal, which values the company at $40/share, could be worth $3.5 billion if certain regulatory milestones are met. Chinook stock closed at $24/share on Friday.
Chinook went public in 2020 in a reverse merger with Aduro Biotech. It has offices in Seattle, Vancouver, B.C., and Oakland, Calif.
“We believe this transaction is great news for kidney disease patients and the programs we have built at Chinook,” Chinook CEO Eric Dobmeier said in a statement.
Dobmeier was previously CEO of Silverback Therapeutics and was COO at Seagen for 15 years.
Novartis is already developing iptacopan, its own drug targeting kidney diseases including IgAN, also known as Berger’s disease.
Earlier this year, Pfizer said it would pay $43 billion to buy Seattle-area biotech giant Seagen. Last month, Swedish company Sobi announced a deal to buy Seattle-based CTI BioPharma in a $1.7 billion deal.
