Novartis, Versant Create Borealis Biosciences to Develop Kidney Disease Treatments

Novartis and Versant Ventures have agreed to partner in the creation of an independent, discovery-stage biotechnology company called Borealis Biosciences, to be based in Vancouver, Canada, Novartis announced in a press release on Aug. 22, 2024 (1). Through Novartis’ proprietary xRNA platform, which targets the body’s natural messenger RNA (mRNA) to modulate production of disease-causing proteins, Borealis will focus on the development of next-generation medicines, based on xRNA, for kidney diseases.

The new company is built on the success of Chinook Therapeutics, which was founded by Versant in 2019 and acquired by Novartis in 2023, a process that Novartis said provided valuable insight into the “substantial scientific potential” of Chinook’s legacy talent, facilities, and capabilities within the early research realm (1). Former Chinook researchers will continue drug discovery efforts for Borealis, with the objective of increasing the possibilities, and potential speed, of successfully identifying new medicines to treat renal conditions.

The Vancouver site measures 23,000 square feet and has wet labs for molecular and cellular biology, chemistry, and analytical science.

“Accelerating science is our north star at Novartis. The creation of Borealis as an independent follow-on company to Chinook represents a creative approach to deal-structuring as a means to furthering innovative scientific discovery,” Ronny Gal, Novartis chief strategy and growth officer, said in the press release. “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.”

“Working with leading pharmaceutical players to launch biotechs and form early collaborations is an important pillar of Versant’s investment strategy,” said Jerel Davis, PhD, Versant managing director, in the press release. “Together with Novartis, we look forward to advancing this emerging field of innovation for patients.”

It has been a busy 12 months for Novartis, beginning with the finalization of the company’s $3.5 billion acquisition of Chinook Therapeutics in August 2023 (2). In October 2023, Novartis spun off its generics and biosimilars business, Sandoz, into an independent company; acquisitions of Calypso Biotech, for $425 million, MorphoSys, for $2.9 billion, and Mariana Oncology, for $1 billion, followed in January, February, and May 2024, respectively (3–6).

In addition, in April 2024, Novartis invested the equivalent of $15.7 million dollars in Our Future Health, a UK-based health research program intended to improve understanding of major health conditions (7).

References

1. Novartis. Novartis Employs Creative Deal Structure to Establish Borealis Biosciences–Divests Legacy Chinook Site, Invests to Form New Company and Engages in R&D Collaboration. Press Release. Aug. 22, 2024.
2. Novartis. Novartis Completes Acquisition of Chinook Therapeutics. Press Release. Aug. 11, 2023.
3. Novartis. Novartis Executes Sandoz Spin-Off, Completing Strategic Transformation into a Leading, Focused Innovative Medicines Company. Press Release. Oct. 4, 2023.
4. Calypso Biotech. Calypso Enters into Agreement to be Acquired by Novartis. Press Release. Jan. 8, 2024.
5. Novartis. Novartis to Strengthen Oncology Pipeline with Agreement to Acquire MorphoSys AG for EUR 68 per Share or an Aggregate of EUR 2.7bn in Cash. Press Release. Feb. 5, 2024.
6. Novartis. Novartis Enters Agreement to Acquire Mariana Oncology, Strengthening Radioligand Therapy Pipeline. Press Release. May 2, 2024.
7. Thomas, F. Novartis Invests in UK’s Largest Health Research Program. PharmTech.com, Apr. 3, 2024.