Novartis Agreed To Buy Chinook Therapeutics For 3 Billion

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Novartis Agreed To Buy Chinook Therapeutics For 3 Billion

Novartis Agreed To Buy Chinook Therapeutics For $3.5 Billion

Novartis (Swiss pharmaceutical company) announced its agreement to buy Chinook Therapeutics for a sum of $3.5 billion. Chinook Therapeutics is based in Seattle and works in the field of biotechnology.

This deal to buy Chinook Therapeutics will allow Novartis to improve its development of last-stage drugs by introducing new treatments for severe & rare kidney diseases.

Deal To Close In 3rd/4th Quarter Of 2023

The available data reveals this transaction will be a merger that will see the two companies (Chinook Therapeutics & Novartis) become one entity. The actual deal will take place between Chinook and a new Novartis subsidiary and is likely to legally close during the 2nd half of 2023.

The deal will allow the shareholders of Chinook to receive around $3.2 billion (USD). In other words, the Novartis company will pay around $40 per share in the form of cash in addition to $300 million in the form of contingent value right.

However, one key thing to note is that this will depend on the regulatory achievements, according to the available information.

During the Friday trading session, the shares of Chinook closed at $23.99, but the news of this deal will likely increase the volatility in this biotech company's shares.

Chinook Therapeutics is expecting to receive a pivotal readout in the last quarter of 2023 for its clinical trial. The company is involved in the development of a drug called atrasentan that will be used to treat kidney diseases caused by IgAN.

Chinook Therapeutics also has another drug called Zigakibart (experimental treatment) that's under development. Phase 3 of this is expected to start in Q3 2023.

Over all, this merger will allow Novartis to further improve its hold on the pharmaceutical sector & will give it rights to new & improved medicine.

In addition, this deal will also likely effect the stock prices of Novartis as well since it is making a big bet to acquire a rival pharmaceutical company.

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