Latest news with #PaulMcKenzie
Yahoo
an hour ago
- Business
- Yahoo
US Vaccine Fatigue Will Fade, CSL CEO Says
CSL CEO and Managing Director Paul McKenzie says the time is right to spin off its Seqirus business as vaccine demand grows and "fatigue" fades in the US, especially among the ageing population. The Australian biotech giant's shares plunged the most in 23 years after it reported disappointing earnings. 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
Bloomberg
2 hours ago
- Business
- Bloomberg
US Vaccine Fatigue Will Fade, CSL CEO Says
The China Show CSL CEO and Managing Director Paul McKenzie says the time is right to spin off its Seqirus business as vaccine demand grows and "fatigue" fades in the US, especially among the ageing population. The Australian biotech giant's shares plunged the most in 23 years after it reported disappointing earnings. (Source: Bloomberg)
7NEWS
3 hours ago
- Business
- 7NEWS
Biotech giant CSL to cut 3000 jobs and spin-off vaccine arm as it cuts costs
Australian pharmaceutical giant CSL will cut as many as 3000 jobs and spin-off its flu vaccine arm into a separate business in a bid to shave $500 million from its bottom line. The biotechnology firm announced the shake-up at its annual financial results call on Tuesday, where its chief executive dismissed concerns about US tariffs, but warned about the impact of falling vaccination levels. The company, which is the third largest in Australia, also revealed its revenue rose by 5 per cent during the last financial year and its profit after tax grew by 14 per cent to $US3 billion ($A4.6 billion). Despite its rising profit, CSL chief executive Paul McKenzie told investors the global pharmaceutical market had become a volatile environment, and the company would need to adapt to meet its financial goals and simplify operations. Cost reductions would include cutting up to 15 per cent of its workforce worldwide over the next three years, and closing 22 US plasma centres over the next 12 months. 'We are pleased with this performance, but we know we must rapidly adapt to position ourselves well into the next decade in a constantly evolving operating environment,' Mr McKenzie said. 'We will target more than half a billion US dollars in savings by the end of fiscal year '28.' The company would also seek to 'de-merge' its flu vaccination arm, Seqirus, as part of the shake-up, to become a separate ASX-listed company chaired by former CSL Seqirus president Gordon Naylor. The move would come at a challenging time for flu vaccinations worldwide after low rates of take-up in some countries, Mr McKenzie said, but with signs that could improve. 'We view the softness in the US seasonal category as highly irrational based on the vaccine risk-reward profiles and the scale of disease burdens which this year reached a 15-year high,' he said. 'In the US... we are encouraged by the recent positive universal recommendation by (the Advisory Committee on Immunisation Practices), a clear sign that influenza is not going away and it still has severe impact on public health.' Potential pharmaceutical tariffs floated by US President Donald Trump were also unlikely to affect CSL, Mr McKenzie told investors, due to its operations in the US. Trump threatened to impose tariffs of up to 250 per cent on drug imports from Australia earlier this month, though has yet to confirm details or a timeline for the plan. Total revenue for CSL rose to $US15.5 billion during the 2025 financial year, and the company forecasts revenue to grow between four and five per cent over the 2026 financial year. The company will pay a final dividend of $US1.62 to shareholders, up by 12 per cent.
AU Financial Review
4 hours ago
- Business
- AU Financial Review
CSL's golden run has stalled. It has to break itself up
Paul McKenzie is trying valiantly to put a positive spin on the biggest corporate restructure at CSL in a generation, but let's not muck about. Two things have forced him into the dramatic strategic shift that will see the $116 billion health care giant slash 3000 jobs, cut $500 million in annual costs and spin off its vaccines business into a separate ASX listed group that could be worth as much as $17 billion, making it the largest corporate demerger in Australian history.
Sky News AU
5 hours ago
- Business
- Sky News AU
Australia's largest medical company CSL to cut 3,000 jobs in major restructure
Australia's largest pharmaceutical company will slash about 3,000 jobs across the globe as the company battles the global economic upheaval of Donald Trump's tariff agenda. Melbourne-headquartered CSL, a global biotechnology business specialising in bloods, vaccines and plasma products, on Tuesday revealed it will slash about 15 per cent of its staff in a sweeping restructure. In an announcement on the ASX, the company noted changing business conditions put pressure on it to restructure its operations. 'A dynamic geopolitical backdrop, competitive pressure and organisational complexity have challenged CSL and hindered its ability to deliver superior returns,' CSL said. It outlined an approach to 'driving growth, simplification and shareholder returns' which includes cost-cutting measures and merging its blood plasma and iron deficiency departments. The company also revealed it had closed 22 underperforming centres in August that represented about seven per cent of CLS's plasma footprint in the US. 'The initiatives … will result in a net headcount reduction of up to 15 per cent of CSL's employee base,' the company said. It noted the company restructure will end up impacting between about $400-$450m of cash flow in the 2026 financial year, while it will have a $100m impact in the 2027 financial year. However, the company predicts it will save about $550m annually over the next three years. CSL's chief executive Paul McKenzie lauded the company's business transformation amid market volatility impacting its operations. 'It is from this position of strength that we are taking the opportunity to make significant changes that will continue to drive shareholder returns over the long run,' Mr McKenzie told shareholders '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, and ultimately create even more value for our stakeholders through sustainable, profitable growth.' Alongside the restructure, CSL's influenza vaccine business, Seqirus, will be spun out of the company and become a separate entity on the ASX. As CSL revealed an array of job cuts, the pharmaceutical company also posted a 14 per cent profit jump in the 2025 financial year to USD$3.3 billion (AUD$5.1 billion). Its share price tanked, however, sinking 12.6 per cent as of 12.30pm on Tuesday and wiping about $13 billion off its market cap. The company has struggled with uncertainty after the US President earlier this month signalled he may impose massive 250 per cent tariffs on pharmaceutical imports. Trump said at the start of August he would impose a 'small' tariff on imported pharmaceutical products before hiking it to 150 per cent within 18 months and eventually to 250 per cent.
