Precise Investors

Tuesday, December 6, 2022
Latest News

CSL says plasma business hit but demand strong


The company’s shares were trading up 7% by mid-session, their biggest intraday gain since March 2020

Australian biopharmaceutical firm CSL said its first-half profit fell as the Omicron Covid-19 outbreak stopped people giving blood plasma, the core of its treatments, but declared a return to pre-pandemic collections, sending its shares soaring.

The vaccine unit of Australia’s biggest biotech firm has benefitted from heightened demand for inoculations amid the pandemic, including for the AstraZeneca coronavirus vaccine it makes in Australia.

But most of its profit comes from selling blood plasma treatments for rare diseases.

We anticipate a return to pre-pandemic collection levels, CSL chief executive Paul Perreault told reporters on a call on Wednesday after the earnings were released.

The underlying demand for these products is still quite robust. The problem is the raw material, he said.

The company’s shares were trading up 7% by mid-session, their biggest intraday gain since March 2020, helping push the broader market up 0.5%. The former Australian government laboratory is now the country’s fourth-largest company by market capitalisation.

The interim result ‘exceeded our forecasts and consensus expectations’, RBC Capital Markets analyst Craig Wong-Pan said in a client note.

Jefferies analysts noted that CSL stuck to previous guidance of a full-year profit between $2.15 billion and $2.25 billion, down from the previous year’s $2.38 billion.

But it said the guidance now factored in $90 million to $110 million of costs to buy Swiss drugmaker Vifor Pharma AG, implying a 5% upgrade in earnings to offset those costs.

In the first half, net profit fell 5% to $1.72 billion on a constant currency basis, the company said, declaring an interim dividend of $1.04 cents per share, same as last year.

The pre-tax profit contribution from its plasma unit dropped 22%, while profit from its vaccine division climbed 24%. Since the same period a year earlier, the profit contribution from the company’s vaccine unit has risen from 30% to 40%.


The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply