Novartis and Versant Launch Borealis Biosciences
Novartis announced it has partnered with Versant Ventures to form Borealis Biosciences, an independent, discovery-stage biotechnology company based in Vancouver, Canada, focused on developing next-generation xRNA-based medicines for kidney diseases.
A core technology platform for Novartis, xRNA can target the body’s natural mRNA to modulate the production of proteins that cause disease.
Borealis emerged from the success of Chinook Therapeutics, a kidney disease company founded by Versant in 2019 and acquired by Novartis in 2023. Following the acquisition, Novartis said it quickly recognized the significant scientific potential of Chinook's early stage research talent as well as the facilities and capabilities of the Vancouver site and subsequently decided to fund the launch of Borealis
“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,” said Ronny Gal, chief strategy & growth officer of Novartis. “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.”
Borealis has emerged from stealth with a combined Series A financing from Novartis and Versant, and Novartis has transferred certain employees and the Vancouver site to Borealis, enabling the continuation of drug discovery research by certain former Chinook researchers. According to the funding partners, this will allow for opportunity to create an environment best positioned for the founding team to progress cutting-edge renal and xRNA science, ultimately, increasing the possibility and speed of successful discovery of new medicines in renal diseases.
An additional part of this deal, Novartis said, includes a near-term research funding agreement, which provides the company the option to acquire two future development-ready programs under pre-agreed terms, complementing its core strategic priorities in renal medicine and xRNA technology platform innovation.
“Working with leading pharmaceutical players to launch biotechs and form early collaborations is an important pillar of Versant’s investment strategy,” said Jerel Davis, managing director at Versant. “Together with Novartis, we look forward to advancing this emerging field of innovation for patients.”
