Novartis, the Swiss pharmaceutical behemoth, has announced the acquisition of Chinook Therapeutics, a U.S. kidney treatment developer, in a deal valued up to $3.5 billion (RM16.15 billion). The deal signifies a significant move in combating rare and progressive kidney diseases, primarily affecting young adults.
Seattle-based Chinook Therapeutics is at the forefront of developing two groundbreaking medicines to treat these types of kidney diseases. The seriousness of such diseases cannot be underestimated, as they can lead up to three in ten patients to kidney failure and necessitate dialysis within a decade.
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Under the agreement’s terms, Chinook shareholders will receive a cash payment of $3.2 billion, equivalent to $40 per share. This figure represents a premium of 67% over the company’s closing price on the Friday preceding the announcement. An additional $300 million, or $4 per share, is contingent on achieving specific regulatory milestones.
Novartis CEO, Vas Narasimhan, expressed his concern about IgA Nephropathy (IgAN), the debilitating disease mostly impacting young adults that can lead to dialysis or kidney transplantation. According to Novartis, up to 21 people per million are affected by IgAN in the U.S. each year. Unfortunately, targeted treatment options for this condition are currently lacking.
However, the acquisition of Chinook Therapeutics signals a beacon of hope. Narasimhan expressed his excitement about this unique opportunity to address one of society’s most challenging healthcare issues and potentially provide much-needed treatment options.
Novartis expects the deal to conclude in the latter half of the year, subject to Chinook shareholder and regulatory approvals. The company’s statement highlighted that this acquisition aligns perfectly with Novartis’ strategy to concentrate on innovative medicines. It will considerably augment its renal portfolio, complementing the existing pipeline.
This news is based on the Malay Mail.
