Biotech giant CSL nonetheless expects double-digit | Australian Markets
Low immunisation charges within the US have dented first-half gross sales for CSL’s flu vaccine business, however the biotech giant says it’s on observe to ship double-digit earnings growth this yr.
CSL — Australia’s third-biggest company by market capitalisation at $130 billion — stated income rose 5 per cent to $US8.48b ($13.5b) within the six months to the top of December, with web revenue lifting 6 per cent to $US2.01b.
The company operates three divisions: Seqirus is its flu vaccine business, Vifor focuses on iron deficiency and nephrology merchandise, whereas Behring collects and processes blood plasma.
CSL chief government Paul McKenzie reaffirmed its steerage for the complete financial yr, with web revenue anticipated to be within the vary of about $US3.2b to $US3.3b, representing growth of 10 to 13 per cent.
Income for Seqirus fell 9 per cent to $US1.66b, which Dr McKenzie blamed on the decline in vaccination charges for influenza within the US, significantly within the 18 to 64 age cohort. The consequence was 15 per cent under consensus.
“After increasing sharply during the COVID pandemic, vaccination rates have declined for various reasons, with consumer apathy and reduced access being two of the main factors,” he advised analysts on Tuesday.
“Lower vaccination rates have also led to competitive pressures in the market.
“This weak market backdrop has led to a disappointing result CSL Seqirus this period.”
Dr McKenzie added the incidence of influenza and hospitalisation charges have been up.
“This poses a significant public health risk. In Europe, there are signs that vaccination rates are stabilising and overtime, we expect to see a similar recovery in the US,” he stated.
On the Behring division, gross sales rose 10 per cent to $US5.7b, whereas Vifor income grew 6 per cent to $US1.01b.
“While the market conditions for CSL Seqirus remain challenging, influenza will continue to be a burden to public health systems. We believe our differentiated strategy is well placed to grow market share,” Dr McKenzie stated.
“For CSL Vifor, the iron market growth remains strong and we expect to maintain a leadership position. We will also build on the momentum in our nephrology business.”
Prior to now six months, shares within the company have fallen 12.4 per cent to $270.79.
CSL pays an interim dividend of $US1.30 a share.
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