CSL near diabetes breakthrough

Australia’s largest biotechnology company, CSL (ASX:CSL), might be known mainly for its blood plasma and vaccine products, but it is also active in developing treatments for other diseases.

The company has now announced that it has developed a drug candidate capable of preventing the development and reversing the progression of type 2 diabetes in animal models.

The antibody-based drug candidate blocks human protein Vascular Endothelial Growth Factor B (VEGF-B), which was discovered in 2010 to affect the transport and storage of fat in body tissue.

Inhibiting the protein can therefore prevent fat from accumulating in locations such as the heart and muscles, CSL said, rendering cells within these tissues responsive to insulin again.

A resistance to insulin and attendant build-up in blood sugar levels is a common cause of type 2 diabetes.

In three separate studies, mice which had developed diabetes and had been bred to spontaneously develop the condition were treated with CSL's drug candidate 2H10.

The candidate prevented the progression of type 2 diabetes in mice with the disease, while in the at-risk group 2H10 prevented development of the disease.

In a fourth study, the at-risk mice were crossbred with mice which lack the ability to produce VEGF-B. The results suggest at-risk offspring were protected from developing diabetes.

CSL developed 2H10 as part of its international collaboration with an international team led by professor Ulf Eriksson of Sweden's Karolinska Institute. Eriksson and his team discovered the VEGF-B protein in 1995.

“Since then the VEGF-B project has been a lengthy sojourn in the wilderness, but now we're making one important discovery after the other,” Eriksson said.

Eriksson's team also discovered the VEGF-B's role in the transport of fatty tissue in 2010.

CSL SVP of research Dr Andrew Nash said the strength of the animal model results have left the company “very hopeful that [2H10] will ultimately lead to a new treatment option for people with diabetes.”

He said the company is now exploring options for progressing the development of the candidate, including testing it in humans with type 2 diabetes or at risk of developing the disease.

CSL (ASX:CSL) shares were trading 1.6% higher at $45.90 as of 4pm on Thursday.