CSL Limited Slips Despite A Decent Investor Update

CSL Limited (ASX:CSL), Australia’s largest biotherapeutics company hosted its annual Research & Development briefing today for its investors. In the investor report released yesterday, the company demonstrated excellent track record of investing 10-11% of its global revenue on its research efforts towards new product development (new therapies for life-threatening diseases), market development (expanding therapies to new territories), life cycle management (continuous improvement of existing product lines), expanding capability and capacity across global research sites, innovating in areas of business strength as well as creating and progressing a sustainable portfolio of early stage opportunities.

CSL possesses excellent team of over 1,500 R&D experts who are dedicated to develop and deliver new therapies to solve unmet medical needs and save lives. It invested US$702.4 million in R&D initiatives in the year 2017-18, with an outstanding track record of devoting US$2.9 billion in such investments in last 5 years.

CSL’s core capabilities revolve around Immunoglobulins, Haemophilia, Speciality products, Breakthrough medicines, Transplant and Vaccines & IP. Over past one year, it earned almost half of its revenue from its Immunoglobulin products- Privigen and Hizentra. Privigen is a ready-to-use 10% IVIG approved in 80+ countries worldwide and Hizentra is a 20% SCIG approved in 57 countries worldwide. For Haemophilia, company’s key focus lies on IDELVION and AFSTYLA. Speciality products target at Haegarda/Berinert, Kcentra/Beriplex, Zemaira/Respreeza. CSL is committed to developing novel therapies to improve transplant outcomes, focussing on C1-INH, AAT and Anti-IL-6. It targets its efforts towards leveraging clinical and technical insight in developing protein-based therapies for breakthrough medicines with key focus on CSL 112/312/324/346/311. In addition, it boasts about its speciality product- HAEGARDA, number 1 prescribed therapy in the US for prevention of HAE attacks.

CSL contributed major product development throughout the year 2018. This includes completion of CSL324 Phase 1 Study, Initiation of CSL312 Phase 2 study and CSL730 Phase 1 study, approval of Privigen and Hizentra in US, global rollout of IDELVION, opening of 27 new collection centres in the US by CSL Plasma team, registration of AFLURIA in US for 6M-4 years, FLUAD in UK & Australia and many more achievements.

As on 30 June 2018, the leading biotech firm reported net profit after tax of $1,729 million for a year, representing a 29% rise. It declared an 11% increase in revenue to US$7,915 million. CSL’S management anticipates strong demand for its plasma and recombinant products. Its net profit after tax for FY19 is expected to be around $1,880 - $1,950 million, signifying growth of 10-14% over FY18. Looking ahead the company has several products under development that demonstrate its strong long-term growth potential. These include Hizentra CIDP Japan, Privigen CIDP Japan, Afluria QIV Aus, and Flucelvax QIV EU for the year 2019.

CSL stock performed excellently on ASX, registering an impressive gain of 29.85% throughout this year, given its strong fundamentals and excellent financial results in FY2018. CSL has been one of the Australian investors’ favourite stocks that now trades at a higher level. Despite the investor briefing, the stock was down over 1% on December 05, 2018.

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