Novartis and Versant Ventures revealed Borealis Biosciences on Thursday raised $150 million from a combined Series A financing and strategic research collaboration to develop the next generation of RNA drugs for kidney disease.
The collaboration with Borealis builds on a previous venture in the field of kidney diseases. Five years ago, Versant founded Chinook Therapeutics. In 2023, Novartis will dropped $3.2 billion, with another $300 million at stake to buy Chinook and its two advanced compounds for the treatment of immunoglobulin A nephropathy (IgAN), a rare progressive autoimmune kidney disease.
The two companies said they are collaborating again with the launch of Borealis to replicate Chinook’s success in developing RNA therapeutics for “large unmet needs in patients with kidney disease.” Despite advances in treating patients with IgAN, small molecules and biologic modalities have failed to help with causal targets, Thursday’s announcement said.
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 receptor antagonist (ETA) acquired from Chinook for IgAN. The drug is currently under review for approval by the FDA.
“We have recognized over the past six years that some of the best-validated targets in kidney disease were not achievable using traditional methods,” Versant chief executive Jerel Davis said in a statement. Davis also serves on Borealis’ board of directors and will oversee operations while the company searches for a CEO.
Specific goals have not been announced, but the new biotech company will build on Chinook’s research and target kidney disease. The startup’s team will be “led by a strong group and academic advisors” who have been central to Chinook’s research.
Borealis will operate as an independent company and use the 23,000 square meter site in Vancouver previously leased by Chinook. Novartis has committed up to $100 million up front, plus short-term funds for research. Under the agreement, the Swiss pharmaceutical company has the option to acquire two programs from Borealis for a total of up to $750 million, including clinical and regulatory milestones.
“This three-part transaction of divestment, collaboration and investment is the first of its kind for Novartis and is a testament to our company’s relentless focus on advancing kidney research,” said Ronny Gal, Chief Strategy and Growth Officer at Novartis. said in a statement.
