CSL partners Dutch biotech VarmX in first deal since mass job cuts

Australian biotech giant CSL eyes its first acquisition since devastating lay-offs, targeting a Dutch firm developing revolutionary bleeding medication.

Australian biotech giant CSL’s staff at work in a Melbourne laboratory. Picture: Getty Images

Australian biotech giant CSL is primed to make its first acquisition since announcing a devastating round of lay-offs, considering a takeover of its partner in a new surgical aid venture.

CSL Limited on Tuesday told the ASX it had partnered with Dutch biotech firm VarmX to develop a medication against severe bleeding for patients on anticoagulant medication. It was set to make a $US117m ($176m) payment to VarmX ensuring it has an exclusive option to acquire the company should it wish.

The purchase decision will be contingent on the outcomes of a phase 3 clinical trial funded by CSL, with an eye towards a 2029 commercial product launch.

CSL will make allotted payments of up to $US388m to VarmX as the medication — VMX-C001 — crosses the final hurdles towards its launch, bankrolling the acquisition.

CSL estimated that 20 million people globally were taking relevant anticoagulants, mainly for stroke prevention and deep vein thrombosis, with 3 per cent — or 600,000 — requiring urgent surgery or experiencing severe bleeding. VMX-C001 was fast-tracked by the US Food and Drug Administration given its potential application for emergency medicine.

“CSL has a long history of working in haematology and bleeding disorders and partnering with VarmX strengthens our strategic ambition to deliver enduring patient impact,” CSL chief executive Paul McKenzie said.

“This new treatment will potentially address a clear and significant unmet medical need in a well-defined and growing patient population. It also fits with our strategy of seeking more external partners to help accelerate our clinical and commercial pipeline through investments in validated, clinical-stage opportunities.”

CSL will aid in the product development, manufacturing and release of VMX-C001.

“We are proud to partner with CSL, whose expertise and global reach will be invaluable as we move forward,” VarmX chief executive John Glasspool said.

“VMX-C001 is right in our sweet spot – within the field of haematology and bleeding disorders. It also fits with our strategy of seeking more external partners to accelerate our clinical and commercial pipeline through investments in validated, clinical-stage opportunities,” CSL’s research and development head, Bill Mezzanotte, said.

“CSL was particularly interested in VMX-C001’s unique mechanism of action and the preclinical and early clinical data, which led to the US Food and Drug Administration granting Fast Track Designation; recognising VMX-C001’s potential to address a critical unmet medical need.”

The potential acquisition would mark a change in fortunes for CSL, which last month bled on the stock exchange after announcing 3000 job cuts and the spin-off of its vaccine business Seqirus into a separate company.

CSL on August 18 saw shares tumble from $271.32 to $225.50 by market close, dribbling down to $204.48 in the weeks since — a drop of almost 25 per cent.

CSL, once Australia’s national vaccine producer, is now also facing the threat of pharmaceutical tariffs by the US Trump Administration.

CSL chairman Brian McNamee recently urged the Albanese government to make its national drug subsidy body, the Pharmaceutical Benefits Scheme, more efficient and an easier opportunity for innovative American drugs, saying the nation benefits as much from US innovation in medicines as it does from the protection the nation gets from the Pentagon’s defence spending in the Indo-Pacific.

The US is Australia’s biggest pharmaceutical export market, accounting for 38 per cent of total Australian pharmaceutical exports. Blood products make up about 90 per cent of the trade.

Australia’s pharmaceutical exports to the US were valued at $2.06bn in 2024, accounting for 9 per cent of the nation’s total goods sold into the American market.

While CSL has manufacturing facilities in the US, some of its vaccines and blood plasma products are imported into the country and may be hit by the levies unless it is able to get an exemption.