Blood products giant CSL expects a “more normalised environment” in the second half of fiscal 2022, reporting the business remained resilient and revenue had climbed 5 per cent to $US6 billion ($8.39 billion).
The company tipped a jump in sales in its core plasma products in the second half and beyond, as collection volumes rebounded thanks to greater social mobility and measures implemented by the biotech giant.
While revenue increased, net profit slid 3 per cent at the $116.3 billion business, falling to $US1.76 billion.
This followed an uncharacteristic 45 per cent surge in profit in the first half of 2021 to $US1.8 billion.
Despite profits slipping, the business maintained its $US1.04 a share interim dividend, consistent with what it paid a year ago.
Overall, CSL said the results were in line with its expectations, and highlights included strong growth in its leading haemophilia B product Idelvion and its specialty products Kcentra and Haegarda.
As expected, sales in its immunoglobulin and albumin products were constrained by lower plasma collections.
Its plasma products have a nine to 11 month lead time, so improvements in collection volumes late last year and early this year will only filter through into improved sales in the next 12 month period.
“Our core franchise, the immunoglobulin portfolio, has been impacted by the industry-wide constraints on collecting plasma in FY21 during the course of the global pandemic,” CSL CEO Paul Perreault said.
“We have responded by implementing multiple initiatives in our plasma collections network, which has given rise to significant improvement in plasma volumes collected.
“Given the long-term nature of our manufacturing cycle, this will underpin strong Ig and albumin sales going forward.”
CSL’s main business is the separation of human blood into components that can be converted to therapies for conditions including immunodeficiency and auto-immune diseases, hereditary bleeding disorders and critical care. It relies substantially on people in the US donating their plasma in exchange for payment to make its immunoglobulin therapies.
Its collections took a hit during the pandemic thanks to stay-at-home orders and economy-boosting economic stimulus measures in the US, resulting in people no longer needing the extra income from donating.
It also took a hit from US Customs and Border Protection agency’s decision to ban Mexican citizens from crossing to donate blood plasma.
Some of CSL’s measures to combat the dip in collections included introducing new technology to speed up donor administrative tasks, and engaged social media influencers as part of an educational awareness campaign.
In the half CSL opened 1 8 new plasma collection centres, with up to 35 planned for the full year.
The company also operates flu vaccine business Seqirus, which was involved in the local efforts to manufacture COVID-19 vaccines.
In the first half Seqirus revenue jumped 17 per cent to $US1.7 billion, driven by a 20 per cent lift in sales of seasonal influenza vaccines.
Sales of traditional egg-based vaccines declined 28 per cent, but this was offset by growth in its cell-based vaccines and adjuvanted egg vaccines.
The company has commenced construction on a new cell culture influenza vaccine manufacturing facility in Australia.
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