August 15, 2018
Biotech company CSL this morning reported a strong profit growth of 29% for the year, beating its own management guidance provided in May. Revenue increased across the board, including new product launches and the plasma business. According to CEO Paul Perreault, “the tightness in supply of our key raw material, plasma, has been a feature across the industry this year. The CSL Plasma team have opened 27 new collection centres in the US – a growth rate unmatched in the industry.” Management also provided guidance for fiscal 2019, anticipating 10-14% profit growth.
CSL’s potential blockbuster medicine targeting recurrent heart attacks, CSL112, entered phase 3 trial during the year. If successful, according to Morningstar research it could see commercial launch by 2023 and could reach USD 10 billion in revenues by 2029.
CSL remains one of Australia’s great pharmaceutical success stories, driven by well executed international expansion, and high investment in research and development. It is one of Morgan Wealth’s core holdings and has produced a return of 57% for the 12 months ended 31 July 2018.