Chinook Therapeutics Announces Update on Non-Renal Legacy Programs from Aduro Biotech Merger

Van Herk Investments to Form and Invest in Sairopa, a New Company Focused on Research and Development of B-Select Monoclonal Antibody Platform Programs

VANCOUVER, British Columbia and SEATTLE, April 05, 2021 (GLOBE NEWSWIRE) -- Chinook Therapeutics, Inc. (NASDAQ: KDNY), a biopharmaceutical company focused on the discovery, development and commercialization of precision medicines for kidney diseases, today announced a transaction with Van Herk Investments, a leading European life science investor, to create and fund a new company called Sairopa, with a pipeline focused on research and development of non-renal monoclonal antibodies generated through Aduro Biotech’s B-Select platform. Chinook will own approximately 40 percent of Sairopa after the first tranche of financing from Van Herk and have one seat on Sairopa’s Board of Directors.

“We are pleased to partner with Van Herk to form Sairopa to continue advancing the non-renal antibody programs we acquired through the Aduro Biotech merger last year,” said Tom Frohlich, chief business officer of Chinook. “Van Herk is a well-respected investment firm, and we are confident they will marshal the capital, talent and resources to develop these programs, while Chinook focuses on continuing to advance its kidney disease pipeline.”

As part of the merger, Chinook also assumed Aduro’s collaboration and license agreements with Novartis Pharmaceuticals Corporation (Novartis), Eli Lilly and Company (Lilly) and Merck Sharpe & Dohme Corp. (Merck). Novartis recently notified Chinook that it has discontinued development of the final STING pathway activation program under the collaboration, and as a result, has provided notice of termination of the Novartis collaboration and license agreement.

About the CVR Structure
Through the merger with Aduro Biotech, Aduro’s common stockholders of record as of the close of business on October 2, 2020 received one CVR for each outstanding share of Aduro common stock held on that date. Each CVR represents the contractual right to receive payments from Chinook as a result of any proceeds received for the sale, license, transfer or disposition of Aduro’s non-renal assets during the six months following the close of the merger, net of any tax, transaction costs and other expenses, for a period of up to ten years following closing of the merger.