CSL pays $355mn upfront for Alentis kidney drug in deal worth up to $1.6bn

CSL (CSL.AX) has agreed to co-develop and co-promote an experimental treatment for rare kidney and liver diseases with Swiss drugmaker Alentis Therapeutics, in a deal worth up to $1.6bn, excluding development funding.

Under the terms, CSL will make an upfront payment of $355mn. Alentis is eligible for as much as $1.2bn in commercial milestone payments. Once the drug is commercialized, global profits will be split 55 per cent to CSL and 45 per cent to Alentis.

The agreement gives CSL rights to jointly develop and commercialize lixudebart, formerly known as ALE.F02, a potential first-in-class therapy. The drug is in a Phase 2 trial for a rare autoimmune kidney disease that can cause irreversible damage and end-stage renal disease. The US Food and Drug Administration granted it orphan status in 2024, a designation intended to encourage development of treatments for rare conditions.

CSL shares rose as much as 1.3 per cent to A$177.55 on Monday, while the benchmark ASX 200 index was up 0.6 per cent.

Analysts were measured in their response. "The markets are treating this as good news, but not enough on its own to change the fortunes of the company," said Kyle Rodda, senior financial market analyst at Capital.com. He added that while the deal creates upside risks to future earnings, it is "probably not enough to improve the company's long-term growth outlook".

The deal comes as CSL, once Australia's most valuable listed company, has faced mounting investor pressure. In recent months the group has unveiled plans to cut up to 3,000 jobs, downgraded earnings guidance and delayed the spin-off of its Seqirus vaccines business. Earlier this year its shares fell to their lowest level since 2017 after the Pentagon scrapped a flu-shot mandate for military personnel, heightening concerns over growth prospects and demand for its vaccines unit.