Why is CSL (ASX:CSL) in news today?

Highlights

• Shares of CSL were trading in the green territory today, up 1.684% at 10:54 AM AEDT, 10 November.
• The company entered into a licence agreement with Arcturus Therapeutics on 3 November.
• Arcturus Therapeutics will provide CSL access to its next-gen mRNA vaccine platform.

Australia’s multinational biotechnology company CSL Limited’s (ASX:CSL) shares were trading on a positive note in the morning session today (10 November). Shares of CSL were 1.684% higher at AU$284.320 apiece on the ASX at 10:54 AM AEDT.

This was in line with the positive performance of the S&P/ASX 200 Health Care benchmark index, which was at 40,908.2 points with a gain of 286.4 points at 10:54 AM AEDT today.

Meanwhile, in the last five trading sessions, the Australian healthcare firm’s shares have gained 2.29% while dropping 0.42% in the previous month. On a year-to-date (YTD) basis, CSL’s shares have shed 3.91% and fallen 9.48% in the past year.

Recent developments at CSL

On 2 November 2022, CSL announced that one of its subsidiaries, CSL Seqirus, had signed a licence agreement with Arcturus Therapeutics Holding Inc (NASDAQ:ARCT). Under this agreement, CSL will receive access to Arcturus Therapeutics’ late-stage self-amplifying mRNA vaccine platform.

In detail, Arcturus will give CSL both a non-exclusive licence in the field of multi-pathogen pandemic preparedness and an exclusive licence for its mRNA technology in the disciplines of influenza, COVID-19, and several other respiratory viral diseases. According to the ASX filing, the non-exclusive licence could become exclusive.

For this agreement, CSL has committed to paying a US$200 million upfront payment to Arcturus and being eligible for additional payments after meeting specific development and commercial objectives. Additionally, the two companies have agreed to divide royalties and profits from potential future product sales.

Arcturus Therapeutics is an American RNA medicines company focused on developing next-gen mRNA vaccines.

Talking about this partnership agreement, Paul McKenzie, COO of CSL Limited, said:

Image Source: © 2022 Kalkine Media ®

Data Source- Company announcement dated 2 November 2022

The company anticipates the following benefits from the partnership:

• Access to an established manufacturing network.
• Application to additional pathogens, including those with pandemic potential.
• Faster clinical development with higher chances of success.
• Application to lipid and LNP libraries with usage across vaccines.

Apart from this announcement, the company shared its R&D pipeline on 3 November, in which CSL stated having invested US$1,156 million in its 2021-22 research and development practices. In August, the company added Vifor Pharma to the group as CSL Vifor and published its annual general meeting (AGM) results.

CSL reported a fiscal year revenue of US$10.5 billion and the second-highest profit to date of US$2.25 billion in FY22. The company also announced aims for reducing carbon emissions in 2022 as part of an update to its sustainability plan.