(Reuters) -Australia’s CSL said on Tuesday it will pay $117 million upfront to Dutch firm VarmX for an exclusive option to acquire the privately held company and advance the development of a blood coagulation treatment.
The deal gives CSL the right to buy VarmX after reviewing Phase 3 trial data for VMX-C001, a treatment designed to restore blood clotting in patients taking anticoagulation therapies.
Patients take anticoagulation treatments, more commonly known as blood thinners, to prolong the time taken for blood clotting and reduce the possibility of developing serious conditions such as strokes and heart attacks.
If CSL exercises its option and regulatory milestones are met, VarmX could receive up to $388 million through the treatment’s commercial launch, anticipated in 2029, plus additional commercial milestones thereafter, the biotech major said in a statement.
Under the collaboration agreement, CSL will fund VarmX’s Phase 3 trial evaluating VMX-C001 in patients taking Factor X inhibitors, a protein essential for blood clotting.
The partnership marks CSL’s latest strategic move following a business restructuring last month that included job cuts and plans to spin off its vaccine division — moves that wiped billions off the company’s market value.
(Reporting by Nikita Maria Jino in Bengaluru; Editing by Alan Barona)
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