Chinook Therapeutics surges on $3.5 bln buyout deal with Novartis

Chinook Therapeutics

12/06/2023 17:02

(Updates)
    ** Shares of biotech firm Chinook Therapeutics  KDNY.O  jump
56.4% to $37.52, hitting over 4-year high
    ** Stock among top three pct. gainers across U.S. stock
exchanges 
        ** Swiss drugmaker Novartis  NOVN.S  has 
    agreed
     to acquire KDNY to boost its late-stage drug development
line-up, raising the stakes in the race for a rare kidney
disease treatment 
  
    ** NOVN to acquire KDNY for up to $3.5 bln at $40 per share,
in cash, plus a contingent value right worth up to $300 mln,
depending on certain regulatory achievements - NOVN
    ** The upfront payment represents a premium of 66.7% to
Chinook's closing price on Friday
    ** The transaction is expected to close in the second half
of 2023 - NOVN
        ** KDNY shares slumped, but quickly recovered, last
month when short-seller Muddy Waters 
    said
     it was betting on the stock to fall 
  
    ** Including session's gain, KDNY shares up 43.2% YTD

 (Reporting by Mariam Sunny and Pratik Jain in Bengaluru)
 ((Mariam.ESunny@thomsonreuters.com;))