Trump's tariffs and anti-vaxxer clash with Australia's $130b health giant
It would be unfair to just blame this huge 15 per cent stock slump on its battles with the Trump administration. The biopharmaceutical giant has other challenges that were revealed on Tuesday with its full-year financial results and massive cost-cutting.
But that should only add to the alarm for investors who may have noticed its outlook statement included the words: 'This guidance assumes no impact from pharmaceutical sector tariffs.'
For the uninitiated, CSL's business is dominated by blood plasma products, but includes iron-deficiency-type treatments as well as vaccines. The vaccines company, Seqirus, will soon be spun off into a separately listed business.
CSL chief executive Paul McKenzie put a brave face on Trump's threats to put tariffs up to 250 per cent on pharmaceuticals. This could affect $2 billion worth of Australian exports and the single biggest impact is expected to be on CSL's US exports, which are dominated by plasma products.
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McKenzie pointed out to investors and analysts that most of the company's US business is sourced there, but the repeated questions from his audience say plenty about the market's nervousness.
Especially when one question queried whether the Melbourne-based CSL was re-domiciling to the US.
'I'm not quite sure I relate to the re-domicile point. But just in general for tariffs, if you look at our plasma-derived products – as required from [US] regulatory, the plasma is sourced all in the US,' McKenzie said.
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Sky News AU
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Charlie Teo accuses peers of 'pure jealousy' after Sydney mum forced to fundraise for radical brain surgery
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SBS Australia
an hour ago
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Most Australian houses are designed for bigger families. But that's not who's in them
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