Swiss multinational pharmaceutical corporation Novartis and Versant Ventures have established an independent, discovery-stage biotechnology company Borealis Biosciences.
The new firm, based in Vancouver, Canada, will focus on developing next-generation xRNA-based medicines for kidney diseases. Borealis will seek to leverage scientific and translational breakthroughs and enable RNA therapeutics to address major kidney ailments.
The establishment of the new company follows the success of kidney disease company Chinook Therapeutics founded in 2019. This company was acquired by Novartis last year.
Borealis started its journey with more than $150m in combined Series A financing from Novartis and Versant.
Additionally, Novartis agreed to provide strategic research collaboration funding. The Swiss firm has already transferred some employees and a site in Vancouver to Borealis.
The deal also provides the Swiss company with the option to acquire two future development-ready programmes under pre-agreed terms. Borealis can receive up to $750m in total consideration including clinical and regulatory milestones.
Novartis chief strategy and growth officer Ronny Gal said: “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.
“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.”
Versant managing director and Borealis’ board of directors chairperson Jerel Davis said: “We’ve recognised over the last six years that some of the most validated targets for kidney disease have been out of reach with traditional modalities. Borealis has the potential to address these targets and reach patients most in need.”
