Immunoglobulin sales boost CSL

Company News

CSL has announced a full year net profit after tax (NPAT) of US$1.379 billion, up 6 per cent on a reported basis compared to the previous year.

NPAT grew 10 per cent on a constant currency basis, the company said, after adjusting for one-off costs associated with the acquisition of the Novartis flu vaccine business.

Sales rose 2 per cent on a reported basis to US$5.459 billion, highlighted by the company's CSL Behring division, which reported sales of US$5.029 billion.

Immunoglobulin product sales of US$2.326 billion grew 5 per cent in constant currency terms, with ‘normal’ immunoglobulin volumes up 8 per cent.

The company's vaccine business, bioCSLreported full year sales of A$480 million, an increase of 11 per cent in constant currency terms. Flu vaccine sales increased 18 per cent to A$145 million.

"Contributing to this growth was the re-establishment of our in-house commercial capability. bioCSL’s influenza vaccines were first to market in the U.S., U.K., and Germany – an important competitive advantage," said the company.

It recently completed the US$275 million acquisition of the Novartis flu vaccine business, which it is combining with bioCSL under the leadership of current Chief Financial Officer, Gordon Naylor.

The combined entity will create the world's second largest flu vaccine company.

The company reported lower revenue from intellectual property, attributing the 5 per cent decline in constant currency terms to a reduction in royalties from its human papillomavirus vaccines, which contributed US$106 million to revenue, including GARDASIL.

“CSL’s solid 2015 results demonstrate our track record of delivering strong shareholder returns,” said CSL CEO and Managing Director, Paul Perreault. “Robust demand for our differentiated biotherapies continued, with albumin and specialty products growing at double digit rates. bioCSL is growing again with influenza vaccine sales increasing particularly well.”

“We fast tracked the acquisition of the Novartis influenza vaccines business, which lets us get on with integration much earlier,” he said. “CSL is now the second largest influenza vaccine manufacturer in the world - a sector we understand deeply. The combined business has an extensive product portfolio, broad global sales reach, specialized R&D and scaled manufacturing, positioning the business very well to compete globally.”

Mr Perrault also said the company recently 'broke ground’ on its new recombinant coagulation manufacturing plant in Lengnau, Switzerland.

CSL has used its decision to choose Switzerland over Australia as the location for the new plant to argue for changes in corporate tax arrangements.

“One of the most significant impediments to Australia’s competitiveness, at least as a location for advanced manufacturing for export markets, is its high corporate tax rate, fully three times that of some other jurisdictions,” said the company's Gordon Naylor in a recent speech.