Kidney disease readout sets up Regulus for Novartis buyout

Making good on its vow to continue seeking bolt-on acquisitions, Novartis is buying Regulus in a structured deal that adds a new product to its kidney disease pipeline — with a clearly defined path to accelerated approval.

Novartis AG (SIX:NOVN; NYSE:NVS) will pay $7 per share for 18-year-old Regulus Therapeutics Inc. (NASDAQ:RGLS), valuing the company at roughly double its closing price of $3.49 on Tuesday. The deal includes a contingent value right worth an additional $7 per share if FDA approves Regulus’ farabursen by the end of 2034. The companies characterized the purchase price as $800 million up front, and $1.7 billion if the CVR is fulfilled...