Novartis (NOVN.S) announced Monday that it has agreed to acquire U.S. biotech firm Chinook Therapeutics (KDNY.O) for up to $3.5 billion to boost its late-stage drug development line-up, raising the stakes in the race for a rare kidney disease treatment.
Under the agreement, Seattle-based Chinook’s shareholders will receive $3.2 billion, or $40 per share, plus a contingent value right worth up to $300 million, depending on certain regulatory achievements.
The upfront payment represents a premium of 66.7% to Chinook’s Friday closing price. Chinook’s shares sold at $40.1 in premarket trading on Monday, up from a close of $23.99 on Friday,
By Nadja Popovich and Brad Plume/Reuters
