CSL annual R&D day overview

CSL hosted its annual R&D day yesterday. Overall, we came away with a better appreciation of the company’s protein therapeutics technical platform, underpinned by a core focus on plasma fractionation and recombinant technology across four key verticals (ie Immunoglobulins (43% of total sales), Specially Products (17% of total sales), Haemophilia (19% of total sales) and novel Breakthrough Medicines), and the R&D pipeline’s competitiveness, helping to support our 3 year earnings CAGR of c10% (cons c9%). We continue to view the name as a core portfolio holding and make no changes to our forecast or pricing at this time. While FY16 is a reinvestment year where underlying earnings growth slows, we remain confident in the future growth trajectory as it is underpinned by a strong blood fraction business (5-7% mkt growth), ongoing strength in Speciality products (12%+ growth) and at least five new products slated to launch over the next 12 months (CSL, Add, Price Target A$103.75)