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Investing.com-- Australian biotech giant CSL Ltd (ASX:CSL) said on Tuesday it had entered an agreement with Dutch biotech VarmX to develop a new treatment to restore blood coagulation in patients taking certain blood thinners.
CSL flagged potential in VarmX’ VMX-C001 coagulant, and said it will fund the drug’s global phase 3 trial. The company will also support late-stage product development, manufacturing, and other pre-launch activities.
CSL will make an upfront payment of $117 million for an exclusive option to acquire VarmX, with the right to exercise the option on receipt of the phase 3 trial data. CSL will then pay VarmX up to $388 million based on the company clearing certain milestones and regulatory hurdles, and based on VMX clearing certain commercial milestones after launch.
CSL’s announcement comes just weeks after VarmX received U.S. Food and Drug Administration Fast Track Designation for the coagulant.
The Australian vaccine maker, which is the country’s fourth-largest company, said in August that it planned to spin off its vaccine division and axe about 3,000 employees amid sustained weakness in its U.S. vaccine operations.
The company also flagged plans to greatly overhaul and streamline its operations.