CSL represents a best in class global procurer, fractionator and distributor of plasma derived medical products

CSL represents a best in class global procurer, fractionator and distributor of plasma derived medical products. The competent management team has built a sustainable competitive edge through its efficient collection centre network in the US. The company continues to invest over $400m per annum in R&D to create additional intellectual property and products. This is of particular importance given the unique last litre economics feature in the industry, namely a key driver of profitability is the ability to sell all the products derived from each litre of plasma processed. Importantly CSL trades on a high headline earnings multiple. Our long held view is that the company's underlying value is partly obscured by its exceptionally strong balance sheet. The Board appears to share our view and has taken several important steps to unlock value by applying the strong cash flows generated by the business to buy back shares. (VIEW LINK)