Novartis to acquire Chinook Therapeutics for $3.2B

Novartis (NYSE:NVS) will acquire biopharmaceutical company, Chinook Therapeutics (NASDAQ:KDNY) for $40 per share in cash, or a total of $3.2B.

This offer represents a premium of 83% to Chinook’s 60-day volume-weighted average stock price and 67% to Chinook’s closing price on June 9, 2023.

Chinook shareholders will receive contingent value rights providing for payment of up to $4 per share upon the achievement of certain milestones relating to the lead product candidate, atrasentan.

Total consideration, including the contingent value right, if the milestones are achieved, would be ~$3.5B.

Transaction closing is expected in H2 2023. Chinook will continue to operate as a separate and independent company.

KDNY stock price is up 3%.

More on Chinook Therapeutics:

• Chinook Therapeutics: Travere's Pain Is Chinook's Gain

• Chinook defended at Guggenheim following short report

• Chinook Therapeutics down 5% following Muddy Waters short report