Why Shares of Chinook Therapeutics Skyrocketed On Monday
Shares of Chinook Therapeutics (NASDAQ: KDNY) were up more than 57% early Monday afternoon after the healthcare company agreed to a $3.2 billion buyout offer from .
Chinook is a clinical-stage biotech company that specializes in treating kidney diseases. The company is being acquired by Novartis for $40 per share in cash, a premium of 67% over what the stock was trading for at the close of last week. The company said the deal could mean an additional $4 per share in cash through contingent rights, so it could be worth $3.5 billion. The enticement for Novartis was Chinook's pipeline to treat rare kidney diseases. The deal is expected to be completed in the second half of the year.
Chinook, while a clinical-stage company with little revenue, was on the cusp of being a commercial company. Its lead therapy, atrasentan, is in a phase 3 trial to treat IgA nephropathy (also known as Berger disease). This disease happens when the germ-fighting protein immunoglobulin A (IgA) builds up in the kidneys, causing swelling. The therapy is also in a phase 2 trial to treat proteinuric glomerular diseases, which can interfere with the clearance of waste products by the kidney. The drug is an endothelin receptor antagonist.
Source Fool.com
Novartis AG ADR Aktie
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