Australia’s CSL has entered into an agreement with Switzerland-based Alentis Therapeutics to co-develop and co-promote a treatment for rare kidney and liver diseases, in a deal worth up to $1.6 billion before development funding.

Under the partnership, CSL will make an upfront payment of $355 million. Alentis is eligible for up to $1.2 billion in commercial milestone payments.

The deal gives CSL rights to jointly develop and commercialise lixudebart, formerly known as ALE.F02. It is a potential first-in-class treatment being studied for rare kidney and liver diseases.

Lixudebart is currently in a Phase 2 trial for a rare autoimmune kidney disease that can cause irreversible kidney damage and end-stage renal disease. The companies also plan to advance it for focal segmental glomerulosclerosis, a chronic kidney disease, and primary sclerosing cholangitis, a chronic liver disease with no approved therapy.

Once commercialised, global profits will be shared 55 percent to CSL and 45 percent to Alentis.