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Highlights
- The share price of healthcare giant, CSL Limited, has moved up 4.21% in last five trading days.
- CSL shares appear to be tracing the ASX200 Healthcare index (XHJ) which has gained 2.49% during the same period (last five days).
- CSL announced in May 2022 that the Vifor acquisition is getting delayed.
Biggest ASX-listed healthcare stock, CSL Limited (ASX:CSL) has been posting gains of late. In last five trade days, CSL share price has gained 4.21%. CSL shares have notably moved up from their three-month-low price level. The upward movement is visible despite any new price sensitive announcements by CSL on the ASX.
What is boosting CSL Limited’s (ASX:CSL) share price?
CSL Limited’s share price seems to be moving ahead of the ASX200 Healthcare index (XHJ) recently. In last five days, while XHJ is up 2.49%, CSL share price has gained 4.21%. While the biotechnology giant appears benefitting from the healthcare sector boost, shareholders earlier seemed worried about the Vifor Pharma acquisition delay.
CSL Limited had earlier advised that it shall close the acquisition of Vifor Pharma AG by June 2022. However, in its latest announcement, CSL changed its timeline based on an expected delay in the regulatory approval by a few more months. Meanwhile, CSL remains confident of acquisition completion. The company believes acquisition of Vifor Pharma AG will expand its presence in the rapidly growing nephrology market.
CSL’s latest results
As per a mid-February ASX release, For the half-year ended 31 December 2021, CSL’s total revenue was up 4% at constant currency, on prior comparable period (pcp). However, the reported NPAT was down 5% pcp at constant currency.
In FY22, CSL was expecting a sales growth in key plasma products, Ig and albumin. Meanwhile, Seqirus was expected to deliver a profitable year based on increased demand for influenza vaccines.
In its FY22 first half results announcement, CSL limited provided a guidance on net profit after tax (NPAT) in the anticipated range of US$2.15 to 2.25 billion (at constant currency). The guidance was inclusive of about US$90 to 110 million of transaction costs for Vifor Pharma acquisition. However, the delay in acquisition, seems to have impacted the CSL share price on ASX.
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