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)


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Scott Power
Senior Analyst
Morgans

Senior Analyst at Morgans covering healthcare, life science, telecommunications, technology and media. I've spent the last twenty years investing in and researching emerging companies and have developed a wide network of contacts across these...

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