Novartis Bets $3.5 Billion on Chinook’s Rare Disease Drugs (4)

Novartis AG agreed to buy Chinook Therapeutics Inc. for as much as $3.5 billion to add two promising treatments in advanced tests for a rare kidney disease.

The Swiss drug company will pay $40 a share in cash for Seattle-based Chinook, 67% more than Friday’s close, it said in a statement. Another $4 a share could be paid later if the medicines achieve certain regulatory milestones.

Chief Executive Officer Vas Narasimhan had been more active in slimming Novartis down rather than boosting its drug pipeline through acquisitions before Monday’s announcement. The two Chinook medicines could pay off quickly if ...