Chinook Therapeutics Announces Update on Non-Renal Legacy Programs from Aduro Biotech Merger
Van Herk Investments to Form and Invest in Sairopa, a New Company Focused on Research and Development of B-Select Monoclonal Antibody Platform Programs
VANCOUVER, British Columbia and SEATTLE, April 05, 2021 (GLOBE NEWSWIRE) -- Chinook Therapeutics, Inc. (NASDAQ: KDNY), a biopharmaceutical company focused on the discovery, development and commercialization of precision medicines for kidney diseases, today announced a transaction with Van Herk Investments, a leading European life science investor, to create and fund a new company called Sairopa, with a pipeline focused on research and development of non-renal monoclonal antibodies generated through Aduro Biotech’s B-Select platform. Chinook will own approximately 40 percent of Sairopa after the first tranche of financing from Van Herk and have one seat on Sairopa’s Board of Directors.
“We are pleased to partner with Van Herk to form Sairopa to continue advancing the non-renal antibody programs we acquired through the Aduro Biotech merger last year,” said Tom Frohlich, chief business officer of Chinook. “Van Herk is a well-respected investment firm, and we are confident they will marshal the capital, talent and resources to develop these programs, while Chinook focuses on continuing to advance its kidney disease pipeline.”
As part of the merger, Chinook also assumed Aduro’s collaboration and license agreements with Novartis Pharmaceuticals Corporation (Novartis), Eli Lilly and Company (Lilly) and Merck Sharpe & Dohme Corp. (Merck). Novartis recently notified Chinook that it has discontinued development of the final STING pathway activation program under the collaboration, and as a result, has provided notice of termination of the Novartis collaboration and license agreement.
About the CVR Structure
Regarding Sairopa, Chinook will hold the equity interests in the new company until there is a liquidity event, upon which 50 percent of any proceeds, net of any tax, transaction costs and other expenses, will be distributed to CVR holders, provided such liquidity event occurs during the 10-year CVR period. Regarding the Merck license agreement, 100 percent of any proceeds from future milestone payments and royalties earned by Chinook, net of any tax, transaction costs and other expeses, will be distributed to CVR holders during the 10-year CVR period. If no liquidity event of Sairopa or milestone payments or royalties from Merck occur within the 10-year CVR period, or the consideration received is less than the amounts permitted to be deducted by Chinook, then no payments will be made under the CVR Agreement. Any proceeds from future milestones and royalties earned by Chinook under the Lilly license agreement will be retained by Chinook for the benefit of all Chinook shareholders.
The CVR agreement is available on the Current Report on Form 8-K filed with the SEC on June 2, 2020 and can be found on the SEC’s website at www.sec.gov.
About Chinook Therapeutics, Inc.
About Van Herk Investments
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