Stockholders of Chinook will receive $40.00 in cash per share, a total of $3.2bn, from Novartis.
Upon achieving certain regulatory milestones, they will further receive $4.00 in cash per share, through a contingent value right (CVR), representing a potential additional $300m in aggregate contingent consideration.
In June this year, Novartis signed the agreement to acquire Chinook Therapeutics.
The deal will expand Novartis’ renal portfolio and complement the existing pipeline.
Chinook is engaged in the discovery, development along with commercialisation of precision medicines for kidney diseases.
Its portfolio includes oral endothelin A receptor antagonist (ERA) atrasentan currently in Phase III development for Immunoglobulin A Nephropathy (IgAN).
The pivotal readout from the study is anticipated in the fourth quarter of this year.
Atrasentan is also in early-stage development for the treatment of other rare kidney diseases.
Chinook’s subcutaneously administered anti-APRIL monoclonal antibody Zigakibart (BION-1301) has also entered into Phase III development for IgAN in July this year.
Novartis CEO Vas Narasimhan said: “We are excited to complete this important transaction and look forward to leveraging our combined resources and expertise to further advance the development of these promising treatments for the benefit of patients with rare, severe chronic kidney diseases.
“We welcome the Chinook team to Novartis as we expand our renal portfolio and continue our journey to reimagine medicine.”