© Reuters. FILE PHOTO: The company’s logo is seen at the new cell and gene therapy factory of Swiss drugmaker Novartis in Stein, Switzerland, November 28, 2019. REUTERS/Arnd Wiegmann/File Photo
BERLIN (Reuters) – Novartis said on Monday that it has entered in an agreement to acquire U.S.-based Chinook Therapeutics for $3.2 billion upfront, with the deal expected to close in the second half.
The transaction is in the form of a merger of a newly formed Novartis subsidiary and Chinook, which has two high-value, late-stage medicines in development for rare, severe chronic kidney diseases, the pharmaceutical company added in a statement.
Under the agreed deal, holders of Chinook common stock would receive $3.2 billion in cash upon closing, plus a contingent value right with a value of up to $300 million, payable in cash upon the achievement of certain regulatory milestones, it said.
