Profits have dropped at biotechnology giant CSL as constraints on plasma collection start to impact sales revenues.
The $115 billion pharmaceuticals firm posted a $US1.76 billion ($2.46 billion) profit for the six months to December, a decline of 5 per cent in constant currency terms.
The numbers fell within the company’s guidance and chief executive Paul Perreault said the results were delivered amid a “challenging environment brought about by the ongoing impacts of the COVID-19 pandemic”.Credit:The Age
Earnings per share also declined 5 per cent, coming in at $US3.77, but the company maintained an interim dividend at $US1.04 per share, which converts to $1.46 for Australian shareholders, an increase of 8 per cent on the previous period.
The numbers fell within the company’s guidance and chief executive Paul Perreault said the results were delivered amid a “challenging environment brought about by the ongoing impacts of the COVID-19 pandemic”.
These challenges were evident in the company’s revenue figures for its core immunoglobulin business, which includes therapies created with donated human plasma.
Revenues dropped 9 per cent for the half in constant currency terms, coming in at $US1.977 billion.
Mr Perreault acknowledged that challenges collecting plasma over the course of the pandemic contributed to the numbers, but told investors the business was seeing a significant improvement in plasma collections thanks to initiatives the company has launched over the past two years.
A company presentation said collections, which had dipped as much as 20 per cent across the industry, were up 18 per cent.
“Given the long-term nature of our manufacturing cycle, this will underpin stronger [immunoglobulin and albumin sales going forward,” he said.
Vaccine maker Seqirus posted another strong half, with flu vaccine sales up 20 per cent. The business saw revenues up 17 per cent to $US1.7 billion. In his outlook statements, Mr Perreault indicated that while Seqirus was expected to post a full-year profit, it would post a loss in the second half due to the seasonal nature of the business.
The company is set to complete its $16.4 billion takeover of Swiss firm Vifor Pharma later this year. The company is guiding to full-year 2022 profits of between $2.15 and $2.25 billion on constant currency terms, including up to $110 million in transaction costs for the Vifor acquisition.
More to come.
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