USA — In a groundbreaking move aimed at addressing one of society’s most challenging healthcare issues, Novartis, a prominent Swiss pharmaceutical company, has announced its acquisition of U.S.-based biotech firm Chinook Therapeutics for a staggering sum of up to US$3.5 billion.
The deal, which is expected to close in the second half of 2023, signifies Novartis’ commitment to advancing the treatment landscape for Immunoglobulin A Nephropathy (IgAN), an autoimmune disease that primarily afflicts young adults and can lead to kidney failure.
Under the agreement, Novartis will acquire Chinook for US$40 per share, amounting to approximately US$3.2 billion.
Additionally, the Swiss company has pledged to reward Chinook stockholders with an extra US$4 per share, totaling US$300 million, if one of Chinook’s drugs achieves specific regulatory milestones.
The acquisition of Chinook Therapeutics, endorsed by both companies’ boards, is a significant development in the intensifying race to find effective therapies for IgAN.
By gaining access to Chinook’s “two late-stage assets,” Novartis aims to bolster its capabilities in combating this debilitating kidney disease.
Novartis CEO Vas Narasimhan emphasized that the Chinook acquisition will enable them to address a pressing healthcare challenge.
IgAN affects a substantial number of individuals, with an annual incidence of up to 21 cases per million in the United States, as reported by Reuters.
The prevalence of the disease is notably higher among Asian populations. Moreover, IgAN represents the leading cause of kidney failure in Caucasian young adults.
The disease arises from the accumulation of a protein called immunoglobulin A in the kidneys, resulting in inflammation, potential organ damage, and impaired functionality.
Healthcare acquisitions have witnessed a significant surge, totaling US$157 billion and increasing by 24% this year, according to Bloomberg.
Novartis, already equipped with an internal IgAN candidate called iptacopan (LNP023), discovered at the esteemed Novartis Institutes for BioMedical Research, aims to expand its treatment arsenal.
In June 2021, Novartis celebrated positive results from a Phase II study (NCT03373461) involving 112 patients.
The study demonstrated that iptacopan, administered at the highest dose of 200mg twice daily, resulted in a remarkable 23% reduction in proteinuria compared to the placebo group after 90 days.
Presently, the drug is being evaluated in the Phase III APPLAUSE-IgAN trial (NCT04578834), which aims to assess iptacopan’s efficacy in reducing proteinuria and slowing the progression of renal disease in primary IgA Nephropathy patients.
Chinook Therapeutics has been actively developing two late-stage medicines for IgAN, an area of urgent unmet medical need.
This rare progressive kidney disease lacks targeted treatment options, and while there are currently no cures available, various drugs are employed to manage symptoms.
Recently, the Food and Drug Administration (FDA) approved Filspari, a medicine from Travere Therapeutics, based on its ability to reduce protein levels in urine.
Chinook, alongside other drugmakers like Alnylam Pharmaceuticals, aims to introduce additional treatment options.
Chinook’s two drugs for IgAN have been acquired through strategic collaborations. The more advanced drug, atrasentan, was licensed from AbbVie in late 2019.
Atrasentan, administered orally, blocks the protein receptor endothelin A, with the goal of reducing toxic buildup in the kidneys and preserving their function.
The drug is currently undergoing late-stage testing for IgAN, with results anticipated in the fourth quarter of this year. Furthermore, atrasentan is being explored in earlier stages for the treatment of other rare diseases.
The second drug, zigakibart, an infused antibody that targets the APRIL protein, implicated in disease progression, originated from Aduro Biotech.
Chinook merged with Aduro Biotech to go public in the following year. A Phase 3 study for zigakibart is projected to commence in the third quarter.
Novartis’ impending spin-off of its generic drugs division, Sandoz, in the latter half of 2023 indicates the company’s strategic focus on its drug development efforts.
By strengthening its position in IgAN treatment through the acquisition of Chinook Therapeutics, Novartis is poised to make substantial strides in addressing this debilitating kidney disease and improving the lives of patients worldwide.
For all the latest healthcare industry news from Africa and the World, subscribe to our NEWSLETTER, and YouTube Channel, follow us on Twitter and LinkedIn, and like us on Facebook.
