Novartis AG NVS has agreed to acquire Chinook Therapeutics Inc KDNY for $40 per share in cash, or $3.2 billion.
The 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.
In addition, Chinook shareholders will receive contingent value rights (CVRs), providing for payment of up to $4 per share upon achieving certain future regulatory milestones for Chinook's lead product candidate, atrasentan.
Total consideration, including the contingent value right, would be approximately $3.5 billion.
"Through this merger, Novartis can apply its substantial resources to pursue broader development efforts and commercialization of atrasentan, zigakibart (BION-1301), and other programs in our pipeline to build its global renal therapeutic area," said Eric Dobmeier, president & CEO of Chinook Therapeutics.
Completion of the transaction is expected in the second half of 2023.
Price Action: KDNY shares are up 66.3% at $39.90, and NVS shares are down 0.28% at $100.65 during the premarket session on the last check Monday.
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