By Rajasik Mukherjee
Oct 5 (Reuters) – Australia’s CSL said on Monday it had entered into an agreement with Swiss drugmaker Alentis Therapeutics to co-develop and co-promote a treatment for rare kidney and liver diseases, in a deal worth up to $1.6 billion, excluding development funding.
Under the partnership, CSL will make an upfront payment of $355 million, while Alentis is eligible for up to $1.2 billion in commercial milestone payments.
CSL shares rose as much as 1.3% to A$177.550, while the broader benchmark ASX 200 index was up 0.6% as of 0005 GMT.
The deal gives the Australian biotech giant rights to jointly develop and commercialise lixudebart, a potential first-in-class treatment being studied for rare kidney and liver diseases.
Lixudebart, formerly known as ALE.F02, is currently in a Phase 2 trial for a rare autoimmune kidney disease that can cause irreversible kidney damage and end-stage renal disease.
The US Food and Drug Administration granted the drug orphan status in 2024, which is intended to encourage development of treatments for rare diseases.
Once commercialised, global profits from the drug will be shared 55% to CSL and 45% to Alentis.
“The markets are treating this as good news, but not enough on its own to change the fortunes of the company,” said Kyle Rodda, a senior financial market analyst at Capital.com.
“Although this news creates upside risks to future earnings, it’s probably not enough to improve the company’s long-term growth outlook.”
CSL, once Australia’s most valuable listed company, has faced investor pressure in recent months after unveiling plans to cut up to 3,000 jobs, downgrading earnings guidance, and delaying the spin-off of its Seqirus vaccines business.
Early this year, the CSL stock hit its lowest level since 2017 after the US Pentagon’s decision to scrap a flu-shot mandate for military personnel added to concerns about growth prospects and demand for its vaccines business.
(Reporting by Rajasik Mukherjee in Bengaluru; Editing by Nia Williams and Rashmi Aich)
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