Swine flu bolsters CSL profitFebruary 17, 2010 -...

Swine flu bolsters CSL profit
February 17, 2010 - 8:53AM

Biotherapies group CSL has reported a 23 per cent rise in first-half profit, bolstered by sales of the H1N1 swine flu vaccine, and reaffirmed its full year profit forecast based on current exchange rates.

CSL, which competes against Baxter Healthcare and Spain's Grifols, said it still expects a full year profit between $970 million and $1.07 billion based on current rates, or toward the upper end of a 14-24 per cent rise based on last year's exchange rates.

Net profit before one-offs rose to $617 million for July-December from $502 million a year earlier, well ahead of analysts' forecasts around $526 million.

While investors expect royalties on CSL's HPV cervical cancer vaccine and H1N1 vaccine sales to fall and plasma product prices to slip, they have yet to factor in risks of a growing class action in the United States against CSL and Baxter.

CSL has said it believes there is no substance to the allegations that it colluded with Baxter to control plasma products prices. CSL shares have fallen 2.7 per cent over the past six months against a 5 per cent gain in the broader market.