Looking to build on the success of Chinook Therapeutics, founded by Versant in 2019 and acquired by Novartis last year, the companies on Thursday launched Borealis Biosciences with $150 million in funding to develop RNA therapeutics for kidney diseases.
Novartis and Versant Ventures unveiled Borealis Biosciences Thursday with $150 million in combined Series A financing and strategic research collaboration funding to target next-generation RNA medicines for kidney diseases.
The Borealis collaboration builds on a previous kidney disease company. Five years ago, Versant launched Chinook Therapeutics. In 2023, Novartis dropped $3.2 billion, with another $300 million on the line, to scoop up Chinook with its two late-stage assets for immunoglobulin A nephropathy (IgAN), a rare autoimmune and progressive kidney disease.
The two companies said they are working together again with the launch of Borealis in an effort to repeat the success of Chinook in developing RNA therapeutics for “major unmet needs for patients with kidney diseases.” Despite advances for patients on the IgAN front, causal targets have not been responsive to small molecules and biologic modalities, according to Thursday’s announcement.
Novartis’ xRNA platform targets the body’s natural mRNA to modulate the production of disease-causing proteins. Novartis shared data in May from a Phase III trial of atrasentan, an oral selective endothelin A (ETA) receptor antagonist picked up from Chinook for IgAN. The drug is now under FDA review for approval.
“We’ve recognized over the last six years that some of the most validated targets for kidney disease have been out of reach with traditional modalities” Jerel Davis, managing director at Versant, said in a statement. Davis is also on Borealis’ board of directors and will oversee operations as it searches for a CEO.
While specific targets have not been revealed, the new biotech will be building off Chinook’s research to target subsets of kidney disease. The startup’s team is “led by a strong group and academic advisors” who were central to research at Chinook.
Borealis will operate as an independent company and leverage the 23,000-square-foot site in Vancouver formerly leased by Chinook. Novartis has committed up to $100 million upfront, plus near-term funding for research. As part of the agreement, the Swiss pharma will have the option to acquire two programs from Borealis for up to $750 million in total consideration including clinical and regulatory milestones.
“A first of its kind for Novartis, this three-part transaction of divestment, collaboration and investment is a testament to our company’s unwavering focus on advancing renal science,” Ronny Gal, chief strategy and growth officer for Novartis, said in a statement.
