Latest news with #GordonNaylor
Yahoo
5 hours ago
- Business
- Yahoo
CSL to separate vaccine business, cut jobs
This story was originally published on BioPharma Dive. To receive daily news and insights, subscribe to our free daily BioPharma Dive newsletter. Dive Brief: Australian drugmaker CSL is separating its vaccine business, Seqirus, into a standalone company as part of a sweeping restructuring across its business that will involve workforce cuts of up to 15%. CSL said Tuesday that a separated Seqirus, which will be chaired by former unit president Gordon Naylor, 'will allow autonomy to set an independent strategic direction, including capitalizing on potential opportunities that may arise in a highly dynamic vaccines market.' The de-merger is expected to be completed by June next year. In earnings also released Tuesday, CSL said revenue for its vaccine unit was up 2%, which CEO Paul McKenzie described during a conference call as 'robust result' given lower influenza vaccination rates in the U.S. The lower rates resulted in 'competitive pressure' in the market, he added. Dive Insight: Most of CSL's revenue comes from its CSL Behring business, which sells a range of blood disease treatments. Through Seqirus, however, CSL is also known for seasonal influenza vaccines like Afluria and Flucelvax that it sells worldwide. The company said vaccines contributed $2.2 billion to total revenue of $15.6 billion for the fiscal year ending June 30, which saw a 14% increase in adjusted net profit. While vaccine revenue was up slightly, CEO McKenzie said during the earnings call that the weak market was 'disappointing.' 'We view the softness in the U.S. seasonal category as highly irrational based on the vaccine risk-reward profiles and the scale of disease burden, which this year reached a 15-year high,' he added. Vaccines have become a flash point in the U.S. as Health and Human Services Secretary Robert F. Kennedy Jr. applies more scrutiny to established shots and policy. Most recently, HHS said it would defund research and development related to messenger RNA-based vaccines, canceling $500 million worth of contracts, including one with CSL Seqirus. In 2022, CSL Seqirus licensed mRNA technology from Arcturus Therapeutics to develop new respiratory vaccines. Still, McKenzie expressed optimism in the overall stability of the U.S. influenza market. 'We are encouraged by the recent positive universal recommendation by the [Advisory Committee on Immunization Practices], a clear sign that influenza is not going away, and it still has severe impact on public health,' he said. The Centers for Disease Control and Prevention currently recommends flu vaccination for all people over the age of 6 years. However, the ACIP panel, newly remade by Kennedy, also recommended for removal of the controversial preservative thimerosal from all flu vaccines. Very few vaccines in the U.S. contain thimerosal, but two multi-dose formulations made by CSL Seqirus do. The job and spending cuts, along with the separation, are expected to save as much as $550 million over the next three years. CSL said it aims to 'balance the reinvestment of these savings in high priority opportunities.' CSL also said it would buy back A$750 million, or about $486 million, of shares this financial year. Shares for CSL fell by over 15% on the Australian stock exchange following announcement of the restructuring. Recommended Reading Ovid partners with Waksal startup to develop drugs for rare brain disorders
Economic Times
2 days ago
- Business
- Economic Times
One of the world's largest biotech firms, CSL to cut 3,000 Jobs and spin off its vaccine unit
Synopsis CSL Limited is set to demerge its influenza vaccine division, CSL Seqirus, into a separate ASX-listed entity by the end of fiscal year 2026. This strategic move includes workforce reductions of up to 3,000 positions and the closure of underperforming plasma centers. Despite these changes, CSL anticipates a net profit increase and has announced a share buyback program. CSL to Cut 3,000 Jobs Globally, Spin Off Seqirus Vaccine Unit in Major Restructuring Australian biotechnology leader CSL Limited has unveiled a significant restructuring plan, including the demerger of its influenza vaccine division, CSL Seqirus, and the elimination of up to 3,000 jobs globally. This strategic overhaul aims to streamline operations, enhance agility, and bolster shareholder value amid a challenging global economic landscape. CSL is one of the world's largest medical science companies and operates three divisions. CSL plans to spin off CSL Seqirus into a separately listed entity on the Australian Securities Exchange (ASX) by the end of the 2026 financial year. Seqirus, formed in 2015 through CSL's acquisition of Novartis' influenza vaccine business, reported revenues of $2.2 billion and an operating result of $1 billion in the 2025 fiscal year. The demerger is expected to unlock significant value, with CSL projecting annual pre-tax cost savings of $500-550 million by 2028. Gordon Naylor, former president of CSL Seqirus, will chair the new company, positioning it as a leading global player in the $7 billion influenza vaccine market. The restructuring includes a reduction of up to 3,000 positions, excluding those in blood plasma collection centers. Additionally, CSL will close 22 underperforming plasma centers in the United States during the 2026 financial year. These measures are part of CSL's strategy to simplify its operations and improve efficiency in response to competitive pressures and geopolitical uncertainties. Despite the restructuring, CSL reported a 14 percent increase in underlying net profit to $3.3 billion for the 2025 fiscal year. The company anticipates net profit for fiscal 2026 to be between $3.45 billion and $3.55 billion, representing a 7-10 percent increase over the previous further enhance shareholder value, CSL announced a $750 million share buyback program and a final dividend of $1.62 per share, a 12 percent increase from the previous year.
Perth Now
2 days ago
- Business
- Perth Now
Major Aussie business to slash 3000 jobs
Australia's largest pharmaceutical company could cut nearly 3000 jobs from its workforce as it looks to reduce its head count across a number of businesses. The biggest shake up of the business in decades will see nearly 15 per cent of the global workforce reduced in a move aimed at 'simplifying the business.' Currently CSL employs about 30,000 staff globally. The pharamaceutical giant said in its annual report that total cost cutting measures will save around $550m annually over the next three years. CSL has announced it will slash roles as it demerger its flu vaccine division. NewsWire / Nicholas Eagar Credit: NewsWire CSL also used its latest market announcement to tell shareholders it was looking to demerge its influenza prevention vaccines-focused unit known as Seqirus into a separate ASX listed business in 2026. Gordon Naylor, a former president of CSL Seqirus, will run the new business. It will also combine the commerical and medical operations of its core blood plasma and iron deficiency businesses into one unit. The remaining CSL group will continue to have posoitions in multiple rare and serious diseases. The demerger will be subject to third party consents, regulatory approvals and CSL will conduct a voluntary shareholder vote. CSL chief executive officer Paul McKenzie said the business recognises a dynamic global backdrop, competitive pressure and organisation complexity have challenged CSL and hindered its ability to deliver superior returns. 'CSL Seqirus continued to show the resilience of its differentiated portfolio and platforms by generating growth in a challenging environment,' he said. 'The majority of avian flu contracts globally were awarded to CSL Seqirus, which was strong recognition of our best-in-class, differentiated platforms.' CSL shares slumped 8 per cent on the market opening down to $271.32.
Time of India
2 days ago
- Business
- Time of India
One of the world's largest biotech firms, CSL to cut 3,000 Jobs and spin off its vaccine unit
Australian biotechnology leader CSL Limited has unveiled a significant restructuring plan , including the demerger of its influenza vaccine division, CSL Seqirus , and the elimination of up to 3,000 jobs globally. This strategic overhaul aims to streamline operations, enhance agility, and bolster shareholder value amid a challenging global economic landscape. CSL is one of the world's largest medical science companies and operates three divisions. CSL plans to spin off CSL Seqirus into a separately listed entity on the Australian Securities Exchange (ASX) by the end of the 2026 financial year. Seqirus, formed in 2015 through CSL's acquisition of Novartis ' influenza vaccine business, reported revenues of $2.2 billion and an operating result of $1 billion in the 2025 fiscal year. The demerger is expected to unlock significant value, with CSL projecting annual pre-tax cost savings of $500-550 million by 2028. Gordon Naylor, former president of CSL Seqirus, will chair the new company, positioning it as a leading global player in the $7 billion influenza vaccine market. Workforce reductions and operational streamlining The restructuring includes a reduction of up to 3,000 positions, excluding those in blood plasma collection centers . Additionally, CSL will close 22 underperforming plasma centers in the United States during the 2026 financial year. These measures are part of CSL's strategy to simplify its operations and improve efficiency in response to competitive pressures and geopolitical uncertainties. Live Events Financial outlook Despite the restructuring, CSL reported a 14 percent increase in underlying net profit to $3.3 billion for the 2025 fiscal year. The company anticipates net profit for fiscal 2026 to be between $3.45 billion and $3.55 billion, representing a 7-10 percent increase over the previous year. To further enhance shareholder value, CSL announced a $750 million share buyback program and a final dividend of $1.62 per share, a 12 percent increase from the previous year.
Business Times
2 days ago
- Business
- Business Times
Australian biotech giant CSL to spin off vaccine unit Seqirus, cut 15% of workforce
[SYDNEY] Australian biotech giant CSL said that it will spin off its Seqirus vaccine business into a separately listed company as part of a restructure that will see it reduce its workforce by as much as 15 per cent and cut costs by around US$500 million a year. CSL Seqirus, which makes seasonal influenza vaccines, contributed US$2.2 billion of the firm's total revenue of US$15.6 billion in the 12 months ended Jun 30, the Melbourne-based company said on Tuesday (Aug 19). Net profit rose 17 per cent to US$3 billion, just above analyst estimates of US$2.97 billion. Seqirus will list on the Australian securities exchange by the end of this fiscal year. The spinoff will give Seqirus, which will be chaired by Gordon Naylor, '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', CSL said. CSL also closed 22 underperforming US plasma centres this month, and will consolidate its research and development from 11 sites into six. The restructure will unlock US$500 million in annual savings by the end of fiscal 2028, though CSL will incur one-off restructuring costs of US$700 million to US$770 million. While CSL employs around 32,000 people, no firm number was put on the job cuts. Further details on the Seqirus spinoff will be given at CSL's capital markets day on Nov 4 to 6 in the US. CSL also plans to buy back A$750 million (S$626 million) of shares this financial year, the first step in a multi-year buyback. BLOOMBERG
