A very strong first half for CSL with the company reporting an 18 per cent jump in revenue to $3.677 billion and a 12 per cent jump in net profit to $806 million.
“CSL’s exceptionally strong performance is a result of the focused execution of our strategy,” said CEO Paul Perreault. “Investments in commercial expansion and skills, R&D delivery, as well as a consistent and relentless focus to be the most efficient leader in our industry has paid off for shareholders. As a result, we possess the capabilities to respond to the changing dynamics of market conditions. Importantly, CSL is well positioned to sustainably deliver on its promise of providing life-saving innovations to patients around the world.
“We continued our strategic expansion of plasma collection facilities now surpassing 160 centres in the US and Europe. First half sales highlights included 34% growth of our liquid intravenous immunoglobulin PRIVIGEN. Specialty Products were up 25%, and albumin increased 19%. Sales did benefit from some atypical market activity, including some competitor supply constraints. By executing on our strategy, we were well prepared to participate and provide life-saving medicines to patients in need.”
In a research note, UBS reiterated its positive outlook for the company with a 12-month share price target of $122. The company closed yesterday up 3 per cent to $118.
UBS said it believes CSL can sustain volume growth in its plasma business for several years and that its Seqirus flu vaccines business, boosted through the acquisition of Novartis’ flu vaccines business, will deliver a profit from 2018.
It said an ‘upside scenario’ could see the company’s share price soar to almost $150 on the back of stronger than expected underlying growth in its plasma and Seqirus flu vaccines business.
Mr Perreault said CSL has never been better positioned for sustainable growth.
“As a global biotechnology leader, CSL is driven by its promise to develop innovative medicines and reliably supply them to patients in more than 60 countries. Our success hinges on the unmatched expertise and deep commitment of our diverse employees, all 17,000-plus spanning more than 30 nations.”