Australia’s CSL to acquire Swiss drugmaker Vifor for $12.3 billion

Australian biopharmaceutical giant CSL Ltd said I would acquire Swiss drugmaker Vifor Pharma AG for $ 11.7 billion in a bid to diversify beyond the blood plasma collection business after taking a hit from COVID-19 curbs.

CSL, one of Australia’s largest company’s reportedly has offered Vifor $179.5 per share-equivalent to 167 Swiss francs per share. That’s a premium of 40% to the 60-day average share price as of Dec 1.

The business acquisition would be CSL’s most significant so far and give access to Vifor’s treatments for kidney, cardio-renal, and iron deficiency diseases. CSL would also gain access to Vifor’s production sites in Portugal and Switzerland.

CSL said that renal diseases were a booming opportunity. Kidney chronic diseases have increased steadily over the past decade. After the planned business acquisition, the company will have 37 products in development, 32% more than CSL’s current offering.

Restrictions imposed during the pandemic had hindered plasma collections, hitting the CSL business unit, which generates almost 90% of the company’s profit.

CSL will fund the acquisition partly through a fully underwritten institutional placement of $4.5 billion. The biotech firm will also undertake a share purchase plan for New Zealand and Australian shareholders to raise $534 million.