June 12 Reuters Novartis said it has agreed to acquire U.S. biotech firm Chinook Therapeutics for up to 3.5 billion to boost its latestage drug development lineup, raising the stakes in the race for a rare kidney disease treatment.

Seattlebased Chinook39;s shareholders will receive 3.2 billion, or 40 per share, in cash under the agreed deal, plus a contingent value right worth up to 300 million, depending on certain regulatory achievements, Novartis said on Monday.

The upfront payment represents a premium of 66.7 to Chinook39;s Friday closing price. Chinook39;s shares were at 40.1 in premarket trading on Monday.

Novartis CEO Vas Narasimhan is eager to raise the prospect of future blockbuster drugs after leading a push to slash costs and reshape the Swiss drugmaker to focus on fewer therapeutic areas and the most promising geographic markets.

Chinook, whose shares closed at 23.99 on Friday, has a leading compound designed to treat IgA Nephrophathy, or IgAN, a rare disease that can lead to kidney failure in young adults which has attracted a range of developers and is already the target of drug candidate developed by Novartis.

Narasimham has previously said he would look primarily at deal targets worth less than 5 billion.

The transaction is expected to close in the second half of 2023, Novartis said in a statement.

Chinook expects to see the pivotal readout in the fourth quarter of this year of a clinical trial in the third and last stage of development of oral drug…