Latest news with #Seqirus
Yahoo
12 hours 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
13 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)
Sydney Morning Herald
13 hours ago
- Business
- Sydney Morning Herald
Trump's tariffs and anti-vaxxer clash with Australia's $130b health giant
To get an idea of where the real financial gravity sits within the Australian investing universe, CSL's market valuation plunge on Tuesday exceeded the entire $17 billion value of Qantas Airways with a billion or two to spare. 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. Loading 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.
The Age
13 hours ago
- Business
- The Age
Trump's tariffs and anti-vaxxer clash with Australia's $130b health giant
To get an idea of where the real financial gravity sits within the Australian investing universe, CSL's market valuation plunge on Tuesday exceeded the entire $17 billion value of Qantas Airways with a billion or two to spare. 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. Loading 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.
7NEWS
14 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.
