CSL shares dip despite profit boost
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More news: Shares in biotechnology company CSL were down 3.2% to $280.94 at 12:20pm, a day after news of a failed drug trial dragged shares prices down 4.8%.
Jarden analysts said Monday's share price drop of 4.8% was not as great as the 6% hit they had expected. Their target price over the next 12 months for CSL was reduced by $17.60 to $298.57 to reflect the CSL112 trial results, but still around a 6% increase from today.
The analysts commented that CSL112 had the potential to generate significant margin upside, as well as act as a material offset to any market disruption from competitors.
Despite the failed trial, Jarden's outlook for CSL remains stable with returns from its Behring division driving double digit growth over the next four years. It maintains their overweight rating to the company.
CSL posts 20% net profit gain, reaffirms full-year guidance
The news: CSL posted a 20% jump in net profit for the first half and reaffirmed full-year guidance, a day after shares in the biotech giant dived following news of a failed drug trial.
The numbers: CSL's net profit for the six months to December grew 20% to USD1.9 billion ($2.9 billion), as the company reaffirmed its full-year net profit guidance of USD2.9 billion to USD3 billion. The biotech company declared a first-half dividend of $US1.19 per share, up 12% on the previous corresponding period.
The context: CSL managing director and CEO Paul McKenzie said the company's strong results were driven by the "exceptional" performance of its Behring division, which operates one of the world's largest plasma collection networks.
On Monday, CSL announced that the phase-three trial of its $1 billion drug candidate CSL112 failed to show it could reduce the risk of major cardiovascular events at 90 days after a heart attack. This resulted in the firm abandoning near-term plans to seek regulatory approval for the drug.
The source: ASX announcement
