CSL Limited, a biotechnology company that produces many biological products from plasma, is diversifying its product portfolio and drug pipeline through its largest acquisition in history: Buy Acquired Vifor Pharma, which focuses on iron deficiency and nephrology, for $11.7 billion.
CSL, headquartered in Melbourne, Australia, said on Tuesday that it had agreed to pay $179.25 in cash per share of Vifor Pharma. This offer is a 40% premium to Vifor’s closing price on December 1, which is traded on six Swiss exchanges. The transaction has been approved by the boards of directors of the two companies.
CSL divides its business into two business units. CSL Behring, which develops and sells drugs for rare and serious diseases, is a larger company, accounting for more than 80% of the company’s US$10.3 billion in annual revenue. CSL Behring produces drugs used in immunology, hematology, cardiometabolic diseases and other fields. The department’s products include immunoglobulin therapy, which is an antibody infusion that helps people with weakened immune systems fight infections. Seqiris is the flu vaccine department of CSL. This business unit is Novartis’ former flu vaccine business, which CSL acquired in 2015.
For the two departments of CSL, the pandemic has led to very different results. The company stated in its financial report that plasma is the raw material for immunoglobulin and other CSL Behring therapies, but the blockade prevented the flow of plasma donations. At the same time, Seqiris saw a boost from the massive use of flu vaccines. According to the company’s full-year financial results for fiscal 2021, seasonal influenza vaccine revenue increased by 41% over the previous year, and a record 130 million doses of vaccine were distributed globally.
In the announcement of the acquisition, CSL CEO Paul Perreault stated that Vifor has expanded and diversified the company’s revenue and gave it an opportunity to expand its influence in the rapidly growing kidney disease treatment market. CSL stated in a report that, driven by diabetes and hypertension, the prevalence of chronic kidney disease has steadily increased at an annual rate of 8% for the past ten years. Investor introduction. In the United States alone, an estimated 37 million adults suffer from chronic kidney disease. These figures indicate demand for Vifor dialysis products, and the company has established a partnership with Fresenius Medical Care, a global dialysis center operator.
CSL did not make any acquisitions in the 2021 fiscal year that ended on June 30.The company’s last acquisition was in June 2020 Acquired Vitaeris 20 million US dollars in advance. This clinical-stage biotechnology company is developing an antibody treatment for long-term rejection in kidney transplant patients.
Vifor is led by Abbas Hussain, a veteran of GlaxoSmithKline and Eli Lilly. Hussain, the former CSL director, joined Vifor in August. His new company has brought 10 commercial products to CSL, including its highest-paid iron-deficiency product Ferinject.Included in the total number of products is Korsuva, FDA approved in August for the treatment of severe itching experienced by patients undergoing dialysisThe drug was developed by Cara Therapeutics, but Vifor is the company’s commercialization partner.
Vifor also owns kidney disease treatments that are still in development, some of which are acquired products. last month, Vifor announces the acquisition of two biotech companies that develop therapies for patients with chronic kidney diseaseCSL stated that the company has 37 product candidates, spanning different development stages, and may launch as many as 4 products in the next two years.
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