CSL: Steady growth and diversified portfolio support underlying earnings

CSL has bought the exclusive worldwide rights (ex-Japan, Korea, Taiwan and Israel) to commercialise influenza treatment RAPIVAB (peramivir injection) from US Biotechnology company BioCryst Pharmaceuticals (BCRX- US; mkt cap US$955m). CSL will pay BioCryst US$33.7m upfront and US$12m if certain regulatory milestones are achieved. While we are a bit cynical on this vaccine licensing deal, it doesn’t detract from our main thesis. We continue to view the name favourably, with its core plasma therapy business delivering high single-digit growth and a diversified product portfolio supporting solid underlying earnings (3 yr CAGR c10%), strong cash flow and lowering risk from a maturing R&D pipeline. (CSL, Add, price Target A$101.73)


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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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