Novartis agrees to buy Chinook for up to $3.5bn

Novartis AG agreed to buy Chinook Therapeutics for as much as $3.5bn to add two promising treatments for a rare kidney disease that are currently in late-stage trials.

The Swiss drug company will pay $40 a share in cash for California-based Chinook, or 67 per cent above the closing price on Friday, according to a statement Monday.

Another $4 a share could be paid later based on achieving certain regulatory milestones.

Chinook has two treatments in late-stage trials to treat IgAN, a progressive, rare kidney disease that mostly affects young adults and currently lacks targeted treatment options.

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