CSL slumps to near two-month low on bleak outlook for units

SYDNEY: Australia’s CSL Ltd forecast weaker outlook for its influenza vaccine making division, Seqirus, and newly acquired anaemia therapy unit, Vifor, sending its shares down to their lowest levels in nearly two months.

CSL’s shares extended losses from Monday when a rare failure for the Phase III trial of its “heart attack” drug CSL112 pushed the company’s stock to the lowest spot in the Australian benchmark index.

CSL said it expects Seqirus to record a loss in second half of fiscal 2024 due to lower seasonal demand for immunisation against influenza.

The company has also reduced near-term growth outlook for Vifor amid a “transitioning iron market”.

It, however, reaffirmed an upbeat annual profit forecast, with expectations of double-digit growth over the medium term after its immunoglobulins business – Behring – saw a strong rise in plasma collections.

CSL expects profit excluding some asset revaluations and one-off costs of US$2.9bil to US$3bil on constant currency basis in fiscal 2024, compared with US$2.44bil reported in fiscal 2023.

The company posted a statutory net profit after tax, excluding one-off items, of US$2.06bil on a constant-currency basis for the half-year period ended Dec 31, up 13% from last year.

Behring posted total revenue of US$5.24bil, up 14% from the year-ago period, benefiting from heavy donations of plasma as well as strong patient demand.

CSL, a former government laboratory which became a stock market darling after a string of large acquisitions made it the world’s largest blood plasma company, said plasma donations will grow, with compensation for donors and labour continuing to trend down. — Reuters