Australia’s CSL Makes $11.7 Billion Bid for Swiss Drugmaker Vifor

In a bid to diversify beyond its blood plasma collection business, Australian biopharma CSL has agreed to buy Swiss drugmaker Vifor Pharma for $11.7 billion. The deal gives CSL access to Vifor’s iron deficiency, nephrology and cardio-renal drugs.  

CSL’s tender offer, at $179.25 per share in cash, represents a premium of approximately 60% to Vifor’s closing price on December 1. The bid also dethrones Merck’s $11.5 billion acquisition of Acceleron, concluded last month, as possibly the biggest deal in biopharma this year. 

The boards of both companies have unanimously recommended the merger. Vifor’s largest shareholder, Patinex AG, which holds a 23% stake, has also agreed to tender its shares.  

“The offer provides an excellent strategic opportunity for Vifor Pharma to optimize future market opportunities from a position of strength and to create substantial value for all stakeholders,” said Jacques Theurillat, Chairman of Vifor’s Board of Directors. 

CSL believes that the acquisition will benefit its growth in the next decade, and will complement its two business units CSL Behring, a main operator of CSL’s blood plasma collection network, and Seqirus, a developer of influenza vaccines. 

“We are excited about deepening our commitment to the Swiss and Global market through the addition of Vifor Pharma to the CSL family, which will add more than 2,600 skilled and talented employees to our global team. We look forward to growing the combined company together with them,” said CSL CEO Paul Perreault.

CSL: Pipeline Will Increase by 37%, Adding Cardio-Renal and Iron Deficiency Products 

CSL now has an opportunity to diversify from its blood plasma collection business, which took a hit in 2020 during the Covid-19 pandemic when many restrictions were imposed. 

Notably, the transaction gives Vifor’s blockbuster drug Ferinject, an iron supplement and anemia treatment, which recorded sales of around $346.4 million in the first half of 2021. 

CSL will also get nine other commercialized products, including Injectafer, Venofer, Veltessa, and Korsuva, which recently got FDA approval in August for moderate-to-severe itching in chronic kidney disease patients on hemodialysis. 

The company has mentioned that Vifor’s products would expand its own pipeline to 37 products, an increase of 37%, and expects up to four products to launch in the next two years. 

Complementing the Portfolio

Vifor’s offerings are expected to complement CSL’s existing portfolio, which covers bleeding and clotting disorders, cardiometabolic diseases and transplants. 

Vifor has also partnered with Fresenius Medical Care, a renal care provider, allowing it to distribute treatments for kidney disease treatments to a global network of patients. 

According to CSL, the nephrology market is estimated to be worth over $25 billion in 2026, driven by aging populations and increasing prevalence of chronic kidney disease risk factors such as diabetes and heart disease.

With Vifor’s pipeline and connections in hand, CSL will be able to diversify its sources of income and reduce its reliance on its blood plasma business. 

Author

Joy Lin

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