Australia’s biggest biotechnology company will purchase the plasma unit of the Swiss Red Cross for $525 million, Bloomberg reports on June 7.
CSL Ltd, which outbid larger rivals like Novartis AG, said the purchase will be funded by cash, new equity and debt.
CSL decided to purchase the plasma unit, called ZLB, to take advantage of a $1.3 billion market for immunoglobulin, a human blood component. Immunoglobulin sales are growing about 9 percent per year, CSL said.
The company estimates that demand for the product, which is used to treat immune-system disorders, will grow at the same rate annually for the next five years.
The Red Cross picked CSL after narrowing down a list of potential buyers to five, Bloomberg reports.
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