Novartis has announced the formation of Borealis Biosciences, an independent, discovery-stage biotechnology company focused on developing next-generation xRNA-based medicines for kidney diseases. The new company is a result of a partnership between Novartis and Versant Ventures, and is based in Vancouver, Canada.
 
Borealis emerged from the successful acquisition of Chinook Therapeutics by Novartis in 2023. Recognizing the significant scientific potential of Chinook’s early research talent, site facilities, and capabilities, Novartis decided to launch Borealis as a separate entity.
 
“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 secured Series A financing from Novartis and Versant, and has transferred certain employees and the Vancouver site from Chinook. This will allow for a more focused and innovative environment for drug discovery in renal diseases.
 
In addition to the initial funding, Novartis has entered into a near-term research funding agreement, granting the company the option to acquire two future development-ready programs. This aligns with Novartis’ strategic priorities in renal medicine and xRNA technology.
 
“Working with leading pharmaceutical players to launch biotechs and form early collaborations is an important pillar of Versant’s investment strategy,” said Jerel Davis, Ph.D., managing director at Versant. “Together with Novartis, we look forward to advancing this emerging field of innovation for patients.”