Commonwealth Serum Laboratories (CSL) was established in 1916 and commenced plasma fractionation in 1952. It was floated by the Federal Government in June 1994 as CSL. It is the largest company in the Australian biotechnology/pharmaceutical sector.
CSL Limited develops, manufactures and markets human pharmaceutical and diagnostic products derived from human plasma. The Company’s products include paediatric and adult vaccines, infection and pain medicine, skin disorder remedies, antivenoms, anticoagulants and immunoglobulins.
The stock has been on Planning Partners Recommended List since 2004 and has continued to deliver solid earnings growth through excellent management and their strong market position. Following the termination of a proposed merger agreement with Talecris Biotherapeutics in the United States for which they had set aside $3.1 Billion, the company has been making acquisitions with their cash reserves. In addition to this, they have been buying back their own shares on market.
In the last 4 months the stock has been overlooked by investors in favour of ‘cyclical earning’ stocks. We believe that this represents a timely opportunity to purchase the company at current levels due to their low debt and defensive nature of earnings.
For further information, or indeed if you would like to discuss the stock in greater depth and how it would fit into your portfolio, please do not hesitate to contact our office on (03) 9830 0366.