Barcelona's role in VarmX and CSL's biomedical macro-operation, valued at up to 2.2 billion dollars

Barcelona consolidates its role as an emerging hub in life sciences with a high-impact international operation that arises, in part, from the local investment ecosystem. Ysios Capital, a venture capital firm specializing in life sciences based in Barcelona and Gipuzkoa, has announced a strategic alliance between its portfolio company VarmX —a spin-off of Leiden University, Netherlands— and the Australian biopharmaceutical company CSL. The agreement, which could reach up to 2.2 billion dollars with a purchase option, foresees CSL financing the phase 3 clinical trial, as well as the production and commercial preparation of a drug to reverse and prevent severe bleeding in patients with coagulation problems.

It is, in fact, VarmX's star drug, VMX-C001. This addresses a medical need of great magnitude, which affects millions of people each year in Europe and the United States: the lack of effective antidotes for new-generation oral anticoagulants, such as rivaroxaban or apixaban. While these drugs are effective, Ysios explains that "between 2% and 4% of patients who take them suffer severe bleeding each year or require urgent surgery that demands reversal of anticoagulation."

In this sense, the new drug presents a differential potential compared to current options: it is designed to be administered in a single dose and immediately restores coagulation. It represents, therefore, an innovative approach to reverse anticoagulation quickly and safely.

In operational terms, with this agreement, VarmX shareholders will receive an initial payment of 117 million dollars for the exclusive purchase option and, should CSL decide to exercise it, they may receive up to an additional 388 million dollars, as well as up to 1.7 billion dollars more in commercial milestones linked to sales. "What this agreement with CSL allows is to finance the study in this phase 3, with CSL providing all the necessary resources, in addition to its experience and capacity," both in trials and in the commercial sphere.

For Ysios Capital, the operation represents a significant return for its investors, which could increase if CSL exercises the purchase option. Since its entry into VarmX in 2020, when it co-led a Series B financing round of 32 million euros, Ysios has supported the company's growth and reinforced its commitment in subsequent rounds. Now, it has also accompanied it in its leap to phase 3.

Inception Bio, and the snowball effect of biomedicine in Barcelona

The operation is part of a broader strategy and a context in which the management company focuses on the heart of the local ecosystem. Ysios Capital, which manages assets valued at 400 million euros under its umbrella, continues its investment trajectory by promoting a new fund: Inception Bio. This fund, which has not yet officially started, is a venture capital investment fund aimed at startups in the early stage, very emerging phase. "We have seen that in Barcelona there is a need for capital linked to technology transfer —points out Joël Jean-Mairet, partner and founder of Ysios—, and we have devised a fund to capitalize on all that knowledge."

Through this new fund, the management company will focus on the earliest stage of biomedicine and will create biomedical startups directly in the laboratory with Barcelona as a backdrop. The objective? To capitalize on Barcelona's scientific talent and turn it into investable business projects. The method? In a laboratory, doing killer experiments, explains the founder. That is, "forcing ourselves to have answers about the viability of the projects as soon as possible. Without prolonging the process," adds Guillem Laporta, partner at Ysios. Corporations with a strategic interest in collaborating with production or development companies will join the investment base.

Currently, the company has a portfolio of 42 investee companies, of which 19 have already managed to introduce products to the market, and 70 are in the clinical phase. In addition, it can boast of "covering the entire value chain of the lifescience ecosystem and the biotech industry" —states Laporta—, investing both in very early stages and in large operations with consolidated and listed companies.

From this commitment to the biotech ecosystem, initiated in 2008, the firm has reached a moment —the current one— in which it is increasingly common for the company, or its investees, to make headlines. In recent months, in fact, we have seen the closing of a Series B round of its investee SpliceBio, of 118 million euros; the launch of Telescope and the alliance with Andbank; or the ReproNovo round, of 58 million euros, which also included the Swiss company opening a headquarters in Barcelona.

"5 or 10 years ago, SpliceBio's round would have been impossible —states Jean-Mairet—, but now we are seeing a very interesting chup-chup in the biotech ecosystem, not only in terms of investment, but also with the commitment to Barcelona that large pharmaceutical companies, such as AstraZeneca or Sanofi, are making with the facilities of their hubs."

And it would not have been possible, but now it is, because this chup-chup has caused a snowball effect. Talent attracts more talent. Investment generates more investment. And companies attract more companies. And so, the snowball of the health sciences ecosystem is getting bigger and bigger in Barcelona. And Ysios has something to do with it.