Novartis has partnered with Versant Ventures to establish Borealis Biosciences, a Canada-based independent, discovery-stage biotech company.
The collaboration has resulted in $150m Series A financing for Borealis, which will focus on developing next-generation xRNA-based medicines for kidney diseases.
Borealis leverages an xRNA technology platform that targets the body's natural mRNA to modulate protein production linked to disease.
The inception of Borealis is a direct result of Novartis's 2023 acquisition of Versant-founded Chinook Therapeutics.
Recognising the scientific potential of Chinook's early research team and facilities in Vancouver, Novartis and Versant jointly financed the launch of Borealis.
Novartis chief strategy and growth officer Ronny Gal stated: “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.”
Novartis will offer upfront plus near-term research funding of up to $100, and holds the option for the acquisition of two development-ready programmes from Borealis.
This agreement could lead to Borealis receiving $750m. including clinical and regulatory milestone payments.
The company operates from a 23,000ft² research site in Vancouver, previously leased by Chinook.
The facility has advanced wet labs, vivarium space and capabilities in chemistry and analytics.
Versant Ventures managing director Jerel Davis stated: “Working with leading pharmaceutical players to launch biotechs and form early collaborations is an important pillar of Versant’s investment strategy.
“Together with Novartis, we look forward to advancing this emerging field of innovation for patients.”
In July 2024, Novartis reported a 43% increase in net income from continuing operations, reaching $3.24bn in the second quarter (Q2) of the year, up from $2.27bn in the same period of 2023.
