Ann: Half Year Results Analyst Presentation, page-20

"CSL have a habit of being very conservative in their guidance, BUT CSL112 will cause a large R&D spend once it gets going ($450 to $550m or around $400,000 per day), so it could be a combination of both 2 and 3."

You are right.

And, in a way, 2 is probably better than 3.
Because this company generates 40% ROE pa, which is a rate of return I will never be able to match by investing myself.

So, far better for them to invest the capital generated by the business, straight back into the business, than give it back to me.

If there was any company that I would trust to spend as much as one-third of its annual pre-tax profits on product research and development, this is that company.