Blood products and vaccines giant CSL has added to its portfolio of treatments for rare diseases by agreeing to buy US biotechnology company Calimmune.
The acquisition will provide CSL Behring, CSL's blood products business, with Calimmune's haematopoietic stem cell gene therapy which is being developed for the treatment of sickle cell disease and b-thalassemia.
The deal requires an an up-front payment of $91 million and includes the potential for performance-based milestone payments of up to $325 million over eight years or more following the closing of the transaction.
Sickle cell disease and b-thalassemia are inherited disorders affecting haemoglobin, the protein in red blood cells that carries oxygen around the body.
The two diseases affect organ function and are associated with substantial illness, poor quality of life and shortened life expectancy.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
CSL chief executive Paul Perreault says Calimmune's gene therapy candidate, CAL-H, is promising and complements the company's core competencies and areas of therapeutic focus.
"While Calimmune is still in the early stages, we believe that our combined strengths have tremendous potential to change treatment paradigms and, most importantly, significantly improve the lives of our patients," Mr Perreault said in a statement on Monday.
The acquisition includes research facilities in Pasadena, California and Sydney.
It also includes two technology platforms designed to address some major challenges with the commercialisation of stem cell therapy.
CSL shares were 32 cents higher at $128.87 at 1032 AEST.
