CSL - CSL Limited

[sptrawler]

With CSL trading around $248 a share, I wonder if retail will work out there is a possible discount benefit in play.



The issue price of the SPP Shares will be the lower of:

• the Placement price, being A$273.00 per new share as announced on ASX on 16 December 2021; and
• a 2.0% discount to the 5-day volume weighted average price of CSL shares up to and including the closing date of the SPP (expected to be 7 February 2022), rounded to the nearest cent.

.... counting backwards, that 5 day (trading) period is starting on Tues 02 Feb

Interesting move, CSL seem to be in a bit of a free fall ATM, currently $250

 

[Ferret]

Yep. Cheering on the price fall before sending off my money for the SPP.

 

[Dona Ferentes]

Yep. Cheering on the price fall before sending off my money for the SPP.

and a cheer went up across the land? Actually trading below the amount, right now trading below $250

the issue price of new shares under the SPP is A$253.57, which represents a 2.0% discount to the 5-day volume weighted average price of CSL shares up to and including the closing date of the SPP (Monday, 7 February 2022).

The SPP received strong support from eligible shareholders with a total of 56,1803 individual holders participating. Valid applications totalled A$942,675,000.

As the total value of applications received under the SPP exceeded the SPP target size of A$750 million, CSL has undertaken a pro rata scale-back of applications consistent with the scale-back principles set out in the SPP booklet. These principles were structured with shareholder fairness in mind and designed to deliver as close to pro-rata outcome as possible.

The outcome is as follows:

• Eligible shareholders who applied for A$2,500 of shares will not be subject to any scale-back and will receive the amount they applied for, rounded down to reflect a whole number of shares. Accordingly, those shareholders will receive 9 new shares (for a total issue price A$2,282.13), with their remaining application monies to be refunded.
• Eligible shareholders who applied for more than A$2,500 of shares have been subject to the scale-back methodology having regard to their shareholding as at the record date for the SPP. The scale-back methodology ensures that, subject to the A$30,000 maximum application amount under the SPP, participating shareholders will receive an amount of new shares that:
• at least maintains their percentage shareholding in CSL held prior to the announcement of the Placement and SPP (“Pro Rata Amount”), subject to a minimum allocation of 9 new shares; or
• is equivalent to their application if that is lower than their Pro Rata Amount.

Approximately 94% of valid SPP applicants will receive at least their Pro Rata Amount

 

[UMike]

Didn't participates. Will probably buy a big parcel $10 or more cheaper.

Just doing my own research.

 

[Knobby22]

Didn't participates. Will probably buy a big parcel $10 or more cheaper.

Just doing my own research.

I didn't either. Get them cheaper on the market and I wonder if we are going to get bad news regarding takeover. They rarely go as smoothly as hoped. Also I own too many already. Could be a buying opportunity coming up.

 

[InsvestoBoy]

I'm also a little disappointed that the market price fell straight to the approx SPP price. This seems to be a normal occurrence in this market.

I bought some CSL (Feb21) at $275 for a buy & hold portfolio. I was hoping that the $285 support would hold forever.

 

[divs4ever]

CSL Delivers Half Year Result of $1.76 Billion1 Net Profit

CSL delivered a net profit after tax of $1.76 billion for the first half of financial year 2022,
down 5% at CC2 with revenue up 4% at CC2
.
o Performance in line with expectations
o Strong growth in market leading haemophilia B product IDELVION®
o Strong growth in specialty products KCENTRA® and HAEGARDA®
o Ig and albumin sales limited by constrained plasma collections in FY21
o HPV royalties rebounded strongly
o Strong performance by influenza vaccines business, Seqirus
 Earnings per share $3.77, down 5% at CC2
 Interim dividend3 of US$1.04 per share
o Converted to Australian currency, the interim dividend is approximately
A$1.46 per share, up 8%
 Agreement to acquire Vifor Pharma Ltd, a global specialty pharmaceutical
company with leadership in renal disease and iron deficiency
 Net profit after tax for FY22 is anticipated to be in the range of approximately $2.15
billion to $2.25 billion at constant currency
CSL Limited (ASX:CSL; USOTC:CSLLY) today announces a reported net profit after tax
of $1.76 billion for the 6 months ended 31 December 2021, down 3%, or 5% on a
constant currency basis.


=========================================================================================

DYOR

i do not hold this share ( but have exposure via various LICs and ETFs )

 

[Dona Ferentes]

CSL said the result was in line with expectations and it had experienced strong growth in a number of its product lines. Its Ig and albumin sales were constrained, however, because of lower plasma collections in the 2021 financial year. Its influenza vaccines business Seqirus performed well.

“CSL has delivered a result in line with our expectations in a challenging environment brought about by the ongoing impacts of the global COVID-19 pandemic,” said Paul Perreault, CSL’s chief executive and managing director.

“Our core franchise, the immunoglobulin portfolio, has been impacted by the industrywide constraints on collecting plasma in FY21 during the course of the global pandemic. Our influenza vaccines business, Seqirus once again delivered a strong performance with revenue up 17 per cent at constant currency. This was achieved by significant growth in seasonal influenza vaccines driven by record demand and Seqirus’ differentiated and high value product portfolio.

It said its net profit after tax for FY22 was anticipated to be in the range of about $US2.15 billion to $US2.25 billion at constant currency.

 

[Ferret]

SPP was heavily scaled back. I hadn't bothered trying to work out how many I'm going to get.
I thought I could wait until the allocation is announced and then see if I wanted to buy the rest on market.
Might be too late for that plan following today's results.

 

[Dona Ferentes]

SPP was heavily scaled back. I hadn't bothered trying to work out how many I'm going to get.

Valid applications totalled A$942,675,000. ...exceeded the SPP target size of A$750 million

Not a huge difference. You'll get most, I'd think.

Thought I could wait until the allocation is announced and then see if I wanted to buy the rest on market.
Might be too late for that plan following today's results.

That's always a problem.

(Just for record, I didn't partake.. I've got enough CSL and, besides, thought the macro environment wasn't conducive.)

 

[Dona Ferentes]

The CSL business model depends to a certain extent on blood, and thus plasma, donor collections. There have been appeals for more volunteers to donate in Australia; the big market, the USA, pays each donor. The slides below spell out some of the challenges.


View attachment 129254

A family member, with a neuropathic condition, has been on Privigen for a while. Getting his monthly IVIG transfusion recently, he was asked if would consider a substitute (likely a synthetic). It appears there is a supply issue here in Australia, with not enough blood donors.

 

[Dona Ferentes]

CSL has issued the longest-dated senior bond ever by an Australian or New Zealand corporate, financial or government borrower, as part of its $US4 billion ($5.4 billion) debt raise to help fund its $16.4 billion acquisition of Vifor Pharma

The company announced the pricing of the raise on Thursday morning, split into six $US500 million and $US1 billion chunks.

• US$500m 5-year at a fixed coupon of 3.85%
• US$500m 7-year at a fixed coupon of 4.05%
• US$1,000m 10-year at a fixed coupon of 4.25%
• US$500m 20-year at a fixed coupon of 4.625%
• US$1,000m 30-year at a fixed coupon of 4.75%
• US$500m 40-year at a fixed coupon of 4.95%

! will outlast me !

 

[Dona Ferentes]

CSL’s first chief digital information officer, Mark Hill, has outlined his digital game plan; CSL is building the foundations for decentralised trials to be a core part of its research and development efforts within this decade, speeding up clinical development and opening up trials to more patients.

Mr Hill said the company’s “no-regret” mid-term investments were designed to support a future in which decentralised trials were the norm, including in areas such as bioinformatics (which is often seen as the future of biological research, combining all areas of biology, biochemistry and physiology, with computer science, data analysis and applied mathematics), real-world evidence and observational research.

“The first decentralised trial was done about 11 years ago by Pfizer ... when the smartphone was just coming of age. Now, we’re moving into this world where ... we can do clinical trials at home and potentially send you whatever you need, monitor you via cellphone and actually use Uber, or the mail, to take you your packets [of goods needed].”

After being wooed by CSL chief executive Paul Perreault to join the company, he spent the first few months in the role getting to know its operations and strategies intimately, including going .. to plasma collection centres and seeing first-hand where processes and yield could be automated and improved through digitisation. The rollout of Terumo’s Rika plasma donation system in CSL centres is one such improvement, reducing the plasma collection time by almost 30 per cent to just 35 minutes on average.

Also in the short term, Mr Hill is creating a “digital twin” of CSL’s labs and equipment, so it can predict and prevent when components will fail, shoring up the stability of the company’s supply chain.

"It's creating a vertical replica of all the componentry – the robotics, the equipment that actually fills the bottles for drugs, and understanding the maintenance schedule, instead of relying on a logbook,” he says.

 

[Dona Ferentes]

CSL has pushed out the timeline for its takeover of Swiss group Vifor Pharma, which it initially anticipated closing by June.

CSL said it “now expects the regulatory approval process to take a few more months,” although it did not disclose any potential impediments to the deal.

“CSL remains confident of completing its acquisition of Vifor Pharma AG and looks forward to expanding its presence in the rapidly growing nephrology market, as well as leveraging the companies’ combined expertise to continue to deliver innovative solutions to rare and serious illness,” the company said.

 

[Dona Ferentes]

CSL has put on 10% in the last few weeks, and now above $285 a share. I guess we can attribute this to no negatives emerging for Vifor acquisition, a strong flu season and plasma market expansion .

 

[bluekelah]

Winter is coming for northern hemisphere, along with another covid epidemic and STAGFLATION. This will be my defensive recession proof pick for the month.

 

[Dona Ferentes]

results in.

CSL delivered a net profit after tax of $2.255 billion for the 2022 financial year, down 6% at CC and at the top end of guidance, with revenue up 3% at CC
• Performance as expected in a difficult global environment
• Significant growth in Research & Development investment
• Strong growth in market leading haemophilia B product IDELVION® and key specialty product KCENTRA®
• Immunoglobulin sales limited by constrained plasma collections in FY21, improved second half performance reflects growth in plasma collected
• Significant growth in plasma collections volume expected to underpin future Ig and albumin sales growth
• Exceptional performance by influenza vaccines business, CSL Seqirus
• Garadacimab (HAE) positive top line data - Primary and secondary endpoints met
• Carbon emissions reduction targets set, sustainability roadmap in place
• Acquisition of Vifor Pharma completed on 9 August 2022
• Earnings per share $4.81, down 8%
• Final dividend of US$1.18 per share (approximately A$1.68, franked at 10%)
• Total full year dividend steady at US$2.22 - Converted to Australian currency, the total full year dividend is approximately A$3.11 per share, up 6%
• Net profit after tax for FY23 (excluding CSL Vifor) is anticipated to return to growth and be in the range of approximately $2.4 to $2.5 billion at CC2

 

[Knobby22]

results in.

CSL delivered a net profit after tax of $2.255 billion for the 2022 financial year, down 6% at CC and at the top end of guidance, with revenue up 3% at CC
• Performance as expected in a difficult global environment
• Significant growth in Research & Development investment
• Strong growth in market leading haemophilia B product IDELVION® and key specialty product KCENTRA®
• Immunoglobulin sales limited by constrained plasma collections in FY21, improved second half performance reflects growth in plasma collected
• Significant growth in plasma collections volume expected to underpin future Ig and albumin sales growth
• Exceptional performance by influenza vaccines business, CSL Seqirus
• Garadacimab (HAE) positive top line data - Primary and secondary endpoints met
• Carbon emissions reduction targets set, sustainability roadmap in place
• Acquisition of Vifor Pharma completed on 9 August 2022
• Earnings per share $4.81, down 8%
• Final dividend of US$1.18 per share (approximately A$1.68, franked at 10%)
• Total full year dividend steady at US$2.22 - Converted to Australian currency, the total full year dividend is approximately A$3.11 per share, up 6%
• Net profit after tax for FY23 (excluding CSL Vifor) is anticipated to return to growth and be in the range of approximately $2.4 to $2.5 billion at CC2

i hope they choose today to fix the Australian Dividend.
Everything is going back to normal, the risk/upside is how well the Vifor Pharma acquisition goes. The CEO had experience with the Sequiras acquisition which was a success so I am reasonably positive.
On the downside, some of the works to reduce their carbon footprint flagged will have a short term cost.

 

[Dona Ferentes]

Everything is going back to normal, the risk/upside is how well the Vifor Pharma acquisition goes. The CEO had experience with the Sequiras acquisition which was a success so I am reasonably positive. On the downside, some of the works to reduce their carbon footprint flagged will have a short term cost.

Not that it means anything, but CSL pushing through $300 a share today

 

[UMike]

Failed to hold at the close.......