Chinook Therapeutics, a biopharma company specializing in treatments for kidney diseases, is about to become part of Novartis AG’s empire.

So, let’s talk investment details. The deal involves Novartis scooping up Chinook at $40 per share in cold, hard cash, bumping the total to around $3.2 billion. That’s an 83% premium over Chinook’s 60-day volume-weighted average stock price and 67% over Chinook’s closing price on June 9, 2023.

But wait, there’s more. Chinook shareholders stand to gain even further if certain future regulatory milestones are met for Chinook’s flagship drug, atrasentan. If all goes well, they could see an extra $4 per share, which could potentially push the deal’s total value up to $3.5 billion.

For those holding Chinook (KDNY), this is definitely a moment of cheer. And for those keeping an eye on the healthcare sector, Novartis’ move shows their commitment to expanding their renal portfolio, potentially strengthening their long-term positioning.

The agreement is expected to be completed in the second half of 2023, pending approval by Chinook’s stockholders and other customary closing conditions. Until then, Chinook remains an independent entity, but certainly one to watch.