Latest news with #CSLBehring
New Straits Times
21 hours ago
- Business
- New Straits Times
CSL to cut workforce, spin off flu vaccine arm; shares tumble
KUALA LUMPUR: Australian biotech firm CSL said on Tuesday it would spin off its influenza vaccine division and would cut up to 15 per cent of its workforce as part of a strategic overhaul, sending its shares tumbling 11 per cent. It is also targeting annualised savings of up to US$550 million over the next three years and plans to book a one-off pre-tax charge of up to US$770 million in the current financial year. "The transformational initiatives we are announcing today will further reshape and simplify the business, provide a platform to renew CSL's focus on our core strengths," CEO Paul McKenzie said in a statement. The strategic overhaul was announced in tandem with earnings, with CSL reporting a 14 per cent rise in underlying profit for the year ended June to US$3.3 billion on a constant currency basis, driven by a strong performance from its blood plasma business, CSL Behring. It aims to spin off the flu vaccine unit, CSL Seqirus, into a separately listed entity in Australia by next June, as lower U.S. immunisation rates and potential US tariffs on pharmaceuticals cloud the division's outlook. Craig Sidney, a senior investment advisor at Shaw and Partners, said the spin-off "could actually unlock some value and that may well be positive." But CSL, which employs some 29,900 people, saw its stock tumble to its lowest in five weeks, making it the worst performer in the ASX200 benchmark index, which traded 0.6 per cent lower. "Cutting back staff is normally a positive thing, but I suspect that it will have an impact on earnings growth and that's what the market seems to be focused on at the moment," Sidney said. CSL also said it will resume its share buyback program, starting with A$750 million (US$486 million) this financial year. CSL Behring's fiscal 2025 revenue grew 6 per cent to US$11.16 billion, with demand for its core plasma therapies expected to remain robust in 2026. That underpinned CSL's forecast of underlying annual earnings of between US$3.45 billion and US$3.55 billion on a constant currency basis, though the midpoint of the range fell short of the Visible Alpha consensus of US$3.56 billion. CSL, founded more than a century ago as a government laboratory, declared a final dividend of US$1.62 per share, up from US$1.45 per share declared a year ago.
Yahoo
a day ago
- Business
- Yahoo
CSL announces rise in full year net profit
Major strategic initiatives, including demerger, to transform CSL MELBOURNE, Aug. 18, 2025 /PRNewswire/ -- Global biotherapeutics leader CSL today announced a reported net profit after tax of US$3.0 billion for the 12 months ended 30 June 2025, up 17% on a constant currency basis. Underlying profit (NPATA) was US$3.3 billion, up 14% on a constant currency basis. Dr. Paul McKenzie, CSL's Chief Executive Officer and Managing Director said, "I am pleased to report another on-target result for the 2025 financial year, led by CSL Behring and continued strong demand for our life-saving plasma therapies. "CSL Seqirus continued to show the resilience of its differentiated portfolio and platforms by generating growth in a challenging environment. CSL Vifor grew strongly, underpinned by our resilient iron business and pleasing momentum across the nephrology portfolio," Dr. McKenzie said. Today, the company announced a suite of strategic transformation initiatives designed to ensure continued growth and resilience in a complex operating environment. "Our business has grown this year despite an unprecedented level of challenge and volatility in our external operating environment. Today we are announcing transformational initiatives to reshape and simplify the business, enhance clinical and commercial execution and provide a platform for CSL to focus on our core strengths," Dr. McKenzie said. "These changes are designed to focus our organisation on three Ps: Pipeline, Productivity and People. They will make us match-fit and instil a lean and efficient mindset, reduce complexity and simplify our operating model." A summary of these initiatives is outlined below: Driving Growth, Simplification and Shareholder Returns Research &Development OperatingModel PlasmaNetwork CSL remains steadfast in its commitment to innovation and will drive specific changes that increase the speed of translational research into the clinical setting, while continuing to offer life cycle management expansion to our portfolio. CSL will reduce the proportion of fixed cost in overall spend, and implement initiatives to increase pipeline productivity, including consolidation of R&D footprint. The savings will be directed towards priority programs and developing new disease targets from both internal and external sources. To enhance clinical and commercial execution, a distinctive new Portfolio Development and Commercialisation (PD&C) operating model will integrate R&D, Business Development, and Commercial teams. CSL Behring and CSL Vifor will also combine medical and commercial functions, delivering further synergies and additional revenue growth opportunities. Corporate functions will be streamlined to align to the new operating model. The demand profile for CSL products requires continued growth in the supply of plasma proteins. The successful rollout of Rika and iNomi have driven expected efficiencies, as have manufacturing process improvements, creating opportunities to optimise CSL's plasma collection network. In August 2025 we closed 22 underperforming centres, representing 7% of CSL Plasma's US footprint. The initiatives will result in a net headcount reduction of up to 15% of CSL's employee base. One-off restructuring costs are expected to be approximately $700-$770 million (pre-tax) and $560-$620 million (post-tax), all to be recognised in Financial Year 2026. The cash flow impact is expected to be $400-$450 million in Financial Year 2026, with a further $100 million expected in Financial Year 2027. The initiatives are expected to drive annualised cost savings of $500-550 million progressively over the next three years, with the majority achieved by the end of Financial Year 2027. CSL will look to balance the reinvestment of these savings in high priority opportunities, with the need to deliver sustainable, profitable growth. Intention to demerge CSL Seqirus to shareholders, creating an ASX-listed global vaccine leader CSL today announces its intention for CSL Seqirus to be demerged as a substantial ASX-listed entity before the end of Financial Year 2026. CSL Seqirus is a global leader in seasonal influenza vaccines, with a highly differentiated and market leading product portfolio centred around innovations in cell and adjuvant technologies. A demerger will allow autonomy to set an independent strategic direction, including capitalising on potential opportunities that may arise in a highly dynamic vaccines market, as well as reducing complexity, making the business more agile and efficient to manage. The company will be chaired by Mr Gordon Naylor, an experienced company director and former President of CSL Seqirus. The remaining CSL group will continue to have leading market positions in multiple rare and serious diseases. These franchises have a long track record of delivering value to shareholders, and their scalable platforms will continue to benefit from the positive long-term outlook and demand for their therapies. Both entities will have a sustainable capital structure and access to funding to pursue separate but distinct growth strategies. The demerger will be subject to third party consents, regulatory approvals and CSL will conduct a voluntary shareholder vote. Capital management CSL will recommence a share buyback program. This will be a multi-year, on-market share buyback, starting with A$750m in Financial Year 2026, and is expected to progressively increase over the medium-term. The program will enhance capital efficiency and improve shareholder returns. Joy Linton, CSL's Chief Financial Officer said, "CSL is focused on an efficient and disciplined capital management strategy and is committed to maintaining a strong balance sheet. CSL's net debt / EBITDA ratio has continued to decline and is now below two times which provides opportunities to invest in high returning growth initiatives and external partnerships, while also returning additional cash to shareholders." The buyback will be in addition to the final dividend of US$1.62 per share. The timing and value of shares purchased will be dependent on the prevailing market conditions, share price, opportunities to deploy capital, and other factors. Driving growth, simplification and shareholder returns Commenting on the strategic updates, Dr. McKenzie said, "We firmly believe that a simplified and focused CSL is best for patients, best for our people, and best for our shareholders. The changes announced today will deliver enduring patient value and durable shareholder returns." Dr. Brian McNamee AO, Chair of CSL said, "The Board and Management team are unified in our confidence in the outlook for CSL. We also recognise the need to simplify our structure and remain agile in order to capture this growth. The significant initiatives Paul and his team have outlined today will provide CSL with a renewed focus that will improve shareholder returns. This demerger of CSL Seqirus to our shareholders will create an ASX-listed, global influenza vaccine leader. The company has a great future that will be driven by its strong competitive position in an improving market." Further detail will be provided at CSL's Capital Markets Day on 4 to 6 November 2025 in the United States. Financial Year 2026 Outlook Commenting on CSL's outlook, Dr. McKenzie said: "Financial Year 2026 group revenue growth is anticipated to be approximately 4-5% over Financial Year 2025 at constant currency. "In CSL Behring, we anticipate continued robust demand for our core therapies, as well as the uptake of newer products such as ANDEMBRY® and HEMGENIX®. With the roll-out of the RIKA and iNomi platforms now complete, gross margin is expected to continue to improve. "In Financial Year 2026, CSL Seqirus expects seasonal influenza revenue to stabilise, driven by improving performance in key US segments and launches in other major geographies. We anticipate a substantially lower contribution from avian influenza and COVID-19 than in the prior Financial Year. "CSL Vifor is well positioned to maintain market leading positions, despite new entrants into the iron market. The nephrology franchise will continue to benefit from the ongoing success of therapies such as TAVNEOS® and FILSPARI®. "CSL's NPATA for FY26, excluding the non-recurring restructuring cost, is anticipated to be in the range of approximately $3.45 billion to $3.55 billion at constant currency, representing growth over FY25 of approximately 7-10%. "This guidance assumes no impact from pharmaceutical sector tariffs. It is our current expectation that any such policy would not impact our ability to deliver on the strategic initiatives outlined today. CSL has significant operations in the US and the majority of our commercial portfolio is domestically sourced." "I look forward to keeping the market updated on our progress as we deliver sustainable, profitable growth." Further information: For more information on CSL's results and strategy updates announced today, the company will host a briefing at 10am AEST on 19 August, 2025 which can be accessed via CSL's investors website. Additional details about CSL's results are included in the company's 4E statement, investor presentation slides and webcast, all of which can be found on CSL's website Media ContactsBrett FoleyMobile: +61 461 464 708Email: Hamish WalshMobile: +61 422 424 338Email: View original content to download multimedia: SOURCE CSL Limited Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
a day ago
- Business
- Reuters
Australian biopharma firm CSL posts 14% rise in annual profit
Aug 19 (Reuters) - Australian biopharmaceutical company CSL ( opens new tab reported 14% rise in annual earnings on Tuesday, driven by strong performance at its blood plasma business CSL Behring. The world's second-largest producer of flu vaccines reported net profit after tax attributable for the year ended June 30 of $3.3 billion on a constant currency basis, higher than $3.01 billion reported last year.
Reuters
14-07-2025
- Business
- Reuters
Australia's CSL plans to cut one-third of R&D workforce, AFR reports
July 14 (Reuters) - Australian biotech giant CSL ( opens new tab may lay off around one-third of its 2,500 research and development staff to streamline its operations and improve efficiency, the Australian Financial Review reported, opens new tab on Monday, citing an unnamed source. CSL did not immediately respond to a Reuters request for comment. CSL's head of R&D, William Mezzanotte, briefed staff of the move earlier this month, but the details will not be outlined to the market until the company releases its full-year results on August 19, AFR added. Mezzanotte reportedly said the company would consolidate its R&D teams at six sites, including Melbourne, and increasingly rely on external partnerships and possible acquisitions to fill any gaps, according to AFR. "We are streamlining the R&D organisation to foster collaboration, reduce duplication and improve efficiencies, and we are simplifying our operating mode," a CSL spokesman said, as per the AFR. CSL was established more than a century ago as a government laboratory focusing on manufacturing vaccines. It went public in 1994, and became one of the most valuable companies in Australia through the decades, largely due to its plasma collection business. CSL has invested around $5.8 billion in its R&D division over the past five years, which underpins its core businesses, including its most profitable plasma unit, CSL Behring. The company continues to expect annualised double-digit earnings growth over the medium term, as of February, even as its profit growth slowed in the first half of fiscal 2025.
Chicago Tribune
08-07-2025
- Politics
- Chicago Tribune
Letters: The Big Beautiful Bill won't allow us to build strong communities
I'm trying to make sense of the world — our American world — and simply can't. While many citizens see the act of voting as an opportunity to elect officials into office based on their own needs, values and station in life, we need to remember that a strong community breeds strong opportunity and strong people. It is this community that elected officials need to tend to, not the needs of a few individuals (including themselves). Nearly every word in the recently passed big, heinous bill undermines the most basic building blocks of a strong community — opportunities for health, education and ability to amass wealth. I pray that in the midterms and the next presidential election, we walk into the voting booth actively considering a community perspective and get back to what our ancestors dreamed for each of us.I wish to acknowledge the cowardice and inhumanity exhibited by the Republicans in the U.S. House and Senate. As a result of their obsequious behavior, they passed a bill in which 17 million Americans will lose health care. Rural hospitals are already closing. Cuts to the Supplemental Nutrition Assistance Program, or SNAP, could affect 40 million people. I don't want a tax break if it means less for my fellow Americans. I don't want Americans dying for lack of care or hunger on my watch. I don't want detention camps built on swamps. I don't want people of color swept off the streets without due process. We all should acknowledge where this autocratic behavior leads. This is not my America. The one word that sums up this bill is cruelty. Remember this when you cast your ballot in you really want to make America great again, bring back the tax rate of the middle of the 20th century. Instead of raising the national debt by trillions of dollars, we would actually reduce the national debt by trillions of dollars. Instead of giving the billionaires a major tax cut with the 'Big Beautiful Bill,' they would actually help out the country by paying more doomsday predictions about President Donald Trump's tariffs haven't come true. Trump's method of negotiation is brass-knuckle businesslike. Nobody complains about the way the health care industry forces us to pay high prices for low-quality service. People blame high prices on whoever is the president, no matter which party, but they rarely blame the real perpetrators of inflation: the greedy business leaders who worship the almighty dollar. When was the last time the corporate office of Kroger and Albertsons was picketed for the high prices of groceries or the Prime Healthcare and Ascension headquarters saw protesters pleading the case for better health care choices and lower costs? I live within walking distance of a large CSL Behring complex that provides great, high-paying jobs for the community. CSL Behring charges high prices for its products, but the facility sees no protesters. We have a president who is fighting successfully for the U.S. consumer, and the Tribune Editorial Board is there a single actual conservative in the Republican Party any longer? My father campaigned for Barry Goldwater, and I have not seen a single Republican whom Goldwater would have voted for since Ronald Regan!The GOP has fallen to another low. A new Louisiana law rebrands natural gas as 'green energy,' which is a horrifying result of the indebtedness of leaders of Republican states to the petroleum industry. The word 'rebranding' makes it seem like a box of cereal, not the air we breathe. Louisiana, Indiana and Tennessee have all passed legislation calling natural gas 'green energy.' Clearly, these governors and the state legislators believe their constituents who voted them into office are so gullible that facts and truth are unnecessary. It is indisputable that natural gas is a fossil fuel contributing to the greenhouse effect. The problem is that the entire earth shares the U.S. Agency for International Development just formally closed its doors after 60 years of global humanitarian operations. Recently, the noted medical journal Lancet published a study that concluded that the loss of this funding could lead to 14 million unnecessary deaths abroad by 2030. How could President Donald Trump do this? Fourteen million dead people! Obviously, regarding foreign affairs, the first 'A' in MAGA stands for 'America (only).' In that view of the world, deaths in African countries and other poor areas are simply not important. They are not Americans; they are not part of 'Make America Great Again.' Notably, a previous Republican president, George W. Bush, had the opposite view of the world. Many believe that Bush's greatest accomplishment was his PEPFAR program, which financed HIV treatment and relief in 50 countries. PEPFAR reportedly saved around 25 million lives. Bush responded appropriately to the USAID closing in a message to its-now unemployed workers: 'You've showed the great strength of America through your work — and that is your good heart. Is it in our national interests that 25 million people who would have died now live? I think it is, and so do you.' Thank goodness for Bush's good I drove around the south suburbs on America's birthday, I saw many flags proudly displayed. Unfortunately, I saw one flag that was flying upside down, which is the universal sign of distress, particularly in instances of extreme danger to life or property as outlined in the U.S. Flag Code. While I understand that these are deeply emotional times for many,.it made me think about all of the soldiers, police, firefighters and many others who risk their lives every day. Our flag represents all of those heroes who may make the ultimate sacrifice for our safety, well-being and freedom. If you are not happy with America's current government, policies, or politics in general, then by all means please get involved with the local, state or federal governments and make your voice heard. That flag represents sacrifice, and it is an insult to those heroes and their families when it is flown upside down. Please consider the broader impact of this particular symbol and treat it with respect and care, even in times of political dissatisfaction.
