Borealis Biosciences, a next-generation RNA medicines company, has emerged from stealth with $150 million in combined Series A financing from founding investor Versant Ventures and Novartis, and committed strategic research collaboration funding from Novartis.
Despite the recent advances for patients with IgA nephropathy, many other forms of highly prevalent kidney disease remain unaddressed. And the understanding of patient subpopulations and distinct underlying pathologies has improved greatly in recent years, but some of the most validated and causal targets have not been amenable to traditional small molecule or biologic modalities.
Borealis was launched on the premise that a convergence of scientific and translational breakthroughs can enable RNA therapeutics to address major unmet needs for patients with kidney diseases. These include an improved understanding of patient stratification, genetically defined targets, requirements for delivery of therapeutic payloads to specific kidney cell types, and advancements in RNA chemistry.
Borealis builds on the success of Chinook Therapeutics, a kidney disease company founded by Versant in 2019 and acquired by Novartis last year for up to $3.5 billion. This team is led by a strong group of academic advisors central to Chinook’s research, along with additional leadership in RNA therapeutics.
Versant and Novartis collaborated to launch Borealis as an independent company around many key Chinook’s Vancouver-based research team members. And Novartis participated in Borealis’ Series A financing and is committing up to $100 million in upfront plus near-term research funding as part of a strategic research collaboration that complements Novartis priorities in renal medicine and xRNA technology platform innovation.
As part of this deal, Novartis can acquire two future development-ready programs from Borealis, with Borealis eligible for up to $750 million in total consideration including clinical and regulatory milestones.
Borealis’ initial 25-person team worked at the forefront of kidney research and RNA therapeutics for more than a decade. And the company’s scientific advisors comprise global leaders with deep knowledge of targeted delivery of RNA therapeutics, mechanistic insights into kidney disease, and human-based translational data science. These capabilities enabled Borealis to map target opportunities across subsets of patients with kidney disease, and to define methods to enhance delivery of RNA medicines to specific cell types.
KEY QUOTES:
“We’ve recognized over the last six years that some of the most validated targets for kidney disease have been out of reach with traditional modalities. Borealis has the potential to address these targets and reach patients most in need. We are excited to launch this startup in close collaboration with Novartis, as this represents another example of Versant’s creative company-building together with an industry leader.”
– Jerel Davis, Ph.D., managing director at Versant and chairperson of Borealis’ board of directors
“Novartis is committed to bringing forward new therapeutic options for patients with kidney diseases. We believe Borealis will foster an ideal environment for an exceptional founding team to continue to pioneer renal science and drug discovery, and we are delighted to work with Versant on a partnership that exemplifies creative, collaborative deal-making to enable the launch of this innovative biotech.”
– Fiona Marshall, Ph.D., President of Biomedical Research at Novartis
“Versant has had the opportunity to back this team of drug hunters for many years. They are behind numerous clinical-stage and marketed therapies, and we look forward to this group’s continued impact on the field of RNA medicines.”
– Dr. Davis
