CSL to pay up to $1.6 bln to develop rare disease drug; shares rise

On Monday, CSL Ltd (ASX:CSL) shares increased as the Australian healthcare firm revealed it had agreed to spend up to $1.6 billion to jointly create and bring to market a novel treatment for rare kidney and liver ailments. The company disclosed that it would initially transfer $355 million to Alentis Therapeutics, with the Swiss biotech firm entitled to a maximum of $1.2 billion in milestone payments contingent on the commercial success of the therapy. CSL's shares on the Sydney Stock Exchange climbed 1.1% to A$177.20 by 00:47 GMT.

In addition to the financial commitment, CSL will support the ongoing and planned clinical trials of lixudebart, an experimental drug currently being evaluated in individuals with ANCA-associated vasculitis and rapidly progressive glomerulonephritis. These rare autoimmune disorders can lead to severe and permanent kidney impairment.

The entities also intend to develop the medication for focal segmental glomerulosclerosis, a persistent kidney disorder, and primary sclerosing cholangitis, a liver condition without any presently available treatment. Profits arising from global commercialization of the drug will be divided 55% to CSL and 45% to Alentis.