CSL’s plasma and iron deficiency business will help drive strong growth and offset the decline in vaccine sales as vaccination rates fall in the US.
Australian biotechnology company CSL reported significant growth in its plasma and iron deficiency business in early 2025.
However, the US decline has resulted in lower vaccine sales and heavy overall performance.
Biopharmaceutical Giant’s net profit was USD 2.010 million ($3.2 billion), up 7% from the previous year as its total revenue rose 5% to $8.48 billion.
CSL also announced a provisional dividend of $1.30 per share, up 9% from last year.
Despite the challenges of the vaccine unit, CSL is confident in its year-round outlook.
Chief Executive Paul McKenzie reaffirmed the company’s guidance and projected a profit increase of 10% to 13% for the fiscal year due to companies with plasma and iron deficiency.
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“CSL has had strong results led by CSL Behring. The market situation for CSL Sikiros remains difficult, but influenza continues to be a burden on the public health system,” Mackenzie said.
Vaccine sales will decrease as vaccination rates drop
CSL Seqirus, the vaccine unit of CSL, the leading provider of flu vaccines, struggled in the first half, especially as vaccination rates fell sharply, especially in the US.
Revenue from the division fell 9% year-on-year to $1.66 billion ($2.6 billion).
Sales of CSL’s egg-based flu shot Fluad fell 17% to $829 million, while Flucelvax, the next-generation cell-based vaccine, fell 12% to $468 million Ta.
The company believes it has declined to reduce flu vaccine intake since the Covid-19 pandemic.
The US Centers for Disease Control and Prevention (CDC) noted that flu vaccination rates had risen before the pandemic, but fell to lowest levels in both children and adults for more than a decade.
Plasma and iron deficiency units promote growth
In contrast, CSL Behring, the company’s largest division, achieved strong performance to $5.7 billion ($9 billion) with revenue growth of 10%.
Growth was driven by a robust demand for immunoglobulin products that help treat immune disorders and accelerated uptake of novel gene therapy for CSL against hematologic bacteria B, a rare blood coagulation disorder.
The company’s iron deficiency and kidney disease business, CSL Vifor, also saw a positive turnaround.
Revenue for this segment increased 6% to $1.08 billion as the units expanded their product offerings.
Vifor, which was acquired for $11.7 billion in 2022, previously struggled with general competition in Europe, but performance in the latest period suggests a recovery.
Analysts are considering CSL performance
CSL results received mixed reactions from analysts. Craig Wong-Pan, an analyst at RBC Capital Markets, said the company’s performance was weaker than expected.
During his conversation with Reuters, he raised the question, “How the company can achieve FY25 NPATA guidance.”
Some investors noted that net income and dividends were slightly below expectations, but CSL Behring’s strong performance and Vifor’s growth were key positives.
Despite the challenges, Mackenzie believes that CSL’s core business will support revenue growth.
“CSL has had strong results in the first half of 2025 led by CSL Behring,” he said.
The company expects annual profits to reach between $3.2 billion and $3.3 billion. This is supported by the continued sales of immunoglobulin products and improved Vifor results.
AAP contributed to this article.
