The CSL Ltd (ASX: CSL) share price is in focus today after the company announced an exclusive agreement for rare kidney and liver disease treatment.
CSL is the largest ASX healthcare share, developing and offering various treatments for certain medical issues for patients. It’s also involved in vaccines and plasma collection.
Exclusive treatment agreement
CSL said it has entered into an agreement with Alentis Therapeutics to co-develop and co-promote lixudebart, a potential first-in-class treatment for people with rare kidney and liver disease.
The ASX healthcare share explained that lixudebart is currently being evaluated in an ongoing phase 2 trial in patients with ANCA-associated vasculitis and rapidly progressive glomerulonephritis (AAV-RPGN), a rare and potentially life-threatening auto-immune disease that can cause irreversible kidney damage and end-stage renal disease.
CSL said the treatment has a novel mode of action designed to target both inflammation and fibrosis, two key drivers of long-term organ injury.
In addition to AAV-RPGN, CSL and Alentis plan to advance lixudebart as a potential treatment for focal segmental glomerulosclerosis (FSGS), a chronic kidney disease, and primary sclerosing cholangitis (PSC), a chronic liver disease for which there is currently no available therapy.
How much will this cost?
CSL said it will make an initial payment to Alentis of US$355 million, with Alentis eligible to receive up to an additional US$1.2 billion in commercial milestone payments.
On top of those payments, CSL will fully fund the completion of the ongoing phase 2 RENAL trial and planned phase 3 trial in AAV-RPGN, the phase 2 trials in FSGS and PSC and other supporting development activities. Once commercialised, global profits will be shared 55% to CSL and 45% to Alentis.
Management comments
The CSL Executive Vice President, Head of R&D said:
We believe lixudebart has the potential to become an important new therapeutic option to help improve kidney function and prevent progression to end-stage kidney disease.
Our collaboration with Alentis reflects CSL’s commitment to building a leading global nephrology franchise, and our strategic intent to create high-value external partnerships.
Final thoughts on the CSL share price
The CSL share price has significantly recovered since its low earlier this year. Since the end of June (meaning FY27 to do), it has risen more than 50% before today’s movements.
With agreements like this, CSL may be able to reinvigorate long-term growth, but I’m not an expert on these treatments so it’s difficult to say how the medical and financial sides of things will perform.
For me, there other ASX growth shares that have a clearer growth outlook.
