CSL Faces Challenges Amidst Declining U.S. Immunization Rates

Australian biopharmaceutical company CSL reported a drop in vaccine sales due to falling immunization rates in the U.S., its largest market. The decline contributed to lower-than-expected profits, despite strong performance from its blood-plasma business. CEO Paul McKenzie highlighted challenges and a weak operating environment amid concerns of public health risks.

Australian biopharmaceutical giant CSL announced a decline in its vaccine sales, attributing the drop to decreasing immunization rates in the United States, which marks its largest market. This downturn has adversely affected CSL's first-half profit growth.

CSL's Seqirus vaccine division experienced a 9% revenue decline, amounting to $1.66 billion for the half-year ending December 31, 2024. CEO Paul McKenzie pointed to post-COVID apathy among 18-to-64-year-olds in the U.S. and reduced vaccine access as key factors creating a challenging business environment.

CSL's profits rose by 6% to $2.01 billion, driven by a robust performance in its blood-plasma segment, yet still fell short of analysts' forecasts. Expected improvements from its Behring and Vifor units are anticipated to bolster full-year profits as CSL navigates these challenges.

(With inputs from agencies.)