What Happened to the CSL Share Price?
CSL Limited [ASX:CSL] is a biopharmaceutical company involved in research, manufacturing and product marketing. CSL develops a range of products to treat viral and bacterial illnesses and bleeding and coagulation disorders such as blood clotting.
The CSL share price closed 0.34% higher on Thursday.
Why Did This Happen to CSL Shares?
Last week, the company closed out the €350 million (AU$501 million) private placement, which was originally announced in August. The proceeds from the deal will fund the group’s capital management placement. This cash will go towards market buybacks and other general business.
What Now for CSL Limited?
CSL have completed eight share buybacks since 2005. This is good news for current shareholders as the company has reclaimed roughly 17% of the shares on issue since then.
Since buying the Novartis influenza business, the share price has moved from $72.50 to a little under $80 per share. Novartis’ business will be combined with the company’s subsidiary bioCSL.
Free Reports:
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Combing these two businesses will mean CSL is the global number two play in the US$4 billion influenza vaccine industry. The growth potential of this increases the value of CSL. Sales could be US$1billion per year over the next three to five years.
In additional, CSL has been exploring a plasma treatment for the Ebola virus at the request of the Gates Foundation.
Some analysts believe CSL’s market share will be tested this year and next. Baxter International Inc. [NYSE:BAX] will soon have its immunoglobin product HyQvia approved in the US. This product could take market share from CSL’s Hizentra.
However, the new business may offset investors’ fears of greater competition.
The stock does seem particularly expensive at the moment, but for those with deep pockets, CSL remains a solid defensive stock.
Shae Smith+
Editor, Money Weekend
The post Why The CSL Limited Share Price Fell Today appeared first on Stock Market News, Finance and Investments | Money Morning Australia.
