VarmX Announces Collaboration With CSL To Develop VMX-C001

(RTTNews) - Tuesday, EQT Life Sciences' portfolio company VarmX has announced a collaboration with CSL Limited (CSLLY.PK) to support the development of its lead asset, VMX-C001, an investigational product for patients in urgent surgery and severe bleeding situations.

As per the deal, CSL will fully fund clinical development of VMX-C001 and pay VarmX shareholders $117 million upfront for an exclusive option to acquire VarmX in a transaction worth up to $2.2 billion.

Additionally, VarmX shareholders will receive a further $388 million in acquisition and additional payments upto the commercial launch of VMX-C001 and upto USD 1.7 billion in sales-based success milestones thereafter.

The deal aligns with CSL's portfolio of medicines designed to minimize bleeding, preserve a patient's own blood supply, improve surgical and medical outcomes and support global public health approaches to patient blood management, the company's CEO Dr. Paul McKenzie explained.

Currently, CSL's stock is trading at $69.74, up 3.17 percent on the OTC Markets.