Novartis, Versant aim to replicate Chinook's success with $150M for Borealis

Borealis Biosciences, a newly established biotech company, has emerged with a significant financial backing, including $150 million in series A funding and an additional $100 million from a licensing deal with Novartis. This new venture is the result of a collaboration between pharmaceutical giant Novartis and venture capital firm Versant Ventures and is focused on pioneering RNA-based therapies for kidney diseases.

The creation of Borealis Biosciences underscores Novartis' continued interest in kidney disease treatment, a strategy highlighted by its recent $3.2 billion acquisition of Chinook Therapeutics. Chinook's expertise and success in the kidney disease domain have evidently influenced Novartis' decision to partner with Versant Ventures in establishing Borealis. The new company aims to leverage the accomplishments and research insights of Chinook's Vancouver-based team, many of whom have transitioned to Borealis.

Borealis is set to concentrate on developing next-generation RNA medicines targeting kidney diseases. This focus will capitalize on advancements in patient stratification, genetically defined targets, and RNA chemistry improvements to deliver therapeutic payloads to specific kidney cell types. The company is also poised to benefit from Novartis' extensive experience and resources in renal medicine and RNA technology.

In addition to the substantial initial funding, the agreement with Novartis positions Borealis to potentially receive up to $750 million in milestone payments. These payments are contingent upon Novartis exercising its option to acquire two development-ready programs from Borealis, thereby advancing them through to regulatory approval.

Fiona Marshall, President of Biomedical Research at Novartis, expressed optimism about the collaboration, stating that Borealis will provide an ideal environment for innovative renal science and drug discovery. Marshall emphasized the importance of creative and collaborative deal-making in launching such pioneering biotech ventures.

Borealis' operations will be housed in a 23,000-square-foot facility in Vancouver, previously occupied by Chinook. The team, consisting of 25 experienced professionals, brings extensive expertise in drug discovery, kidney disease, translational systems biology, data sciences, and related fields. This collective expertise is expected to drive forward Borealis' mission to tackle unaddressed kidney disorders.

Recent advancements in renal medicine have highlighted the need for innovative solutions beyond traditional small molecules or biologics, particularly in light of the improved understanding of patient subpopulations and underlying pathologies. Borealis aims to address these gaps by targeting some of the most validated but previously challenging targets in renal disease treatment.

The strategic move to establish Borealis follows the successful trajectory of Chinook Therapeutics. After being acquired by Novartis, Chinook demonstrated the potential of its treatments, notably with its oral endothelin A receptor antagonist, atrasentan, which showed significant results in a phase 3 study for IgA nephropathy (IgAN). Additionally, Chinook's other IgAN asset, zigakibart, is progressing in phase 3 development under Novartis' stewardship.

Novartis' recent FDA approval for iptacopan, marketed as Fabhalta, further underscores its robust pipeline in kidney disease treatments. Initially approved for paroxysmal nocturnal hemoglobinuria, Fabhalta recently received an FDA nod for IgAN, adding to Novartis' growing portfolio in this therapeutic area.

The establishment of Borealis Biosciences marks a significant step in the evolution of kidney disease treatment, leveraging new scientific insights and collaborative efforts to develop next-generation therapies. With substantial financial backing and a team of seasoned experts, Borealis is well-positioned to make meaningful advancements in the field of renal medicine.