CSL Limited (ASX:CSL) has moved on its first major acquisition play since last month’s heavy selloff, announcing a deal to support Dutch biotech company VarmX with the development of a treatment to restore blood coagulation in patients taking a Factor Xa (FXa) inhibitor.
However, shareholders remain cautious.
Shares in CSL opened 0.5% lower at A$203.54 after the group confirmed a US$505 million (A$757 million) phased investment, including an upfront payment of US$117 million for an exclusive option to acquire VarmX. The option may be exercised following receipt of Phase 3 trial data.
If exercised and subject to milestones and regulatory approvals, VarmX will receive up to US$388 million in additional payments prior to the launch of its lead asset, VMX-C001, with further commercial milestones to follow. Commercial launch is anticipated in 2029.
“CSL has a long history of working in hematology and bleeding disorders and partnering with VarmX strengthens our strategic ambition to deliver enduring patient impact,” said CSL Chief Executive Officer Paul McKenzie.
“This new treatment will potentially address a clear and significant unmet medical need in a well-defined and growing patient population. It also fits with our strategy of seeking more external partners to help accelerate our clinical and commercial pipeline through investments in validated, clinical-stage opportunities.”
McKenzie added: “The preclinical and early clinical data are also very encouraging and led to the U.S Food and Drug Administration (FDA) granting Fast Track Designation, recognising VMX-C001's potential to address a critical unmet medical need.”
Under the agreement, CSL will fund VarmX’s global Phase 3 trial, late-stage product development, manufacturing, and pre-launch activities.
Shares in CSL were trading at $201.86, a decline of 1.28% at 1pm AEST.