Ann: Positive Results from CSL112 Phase 2b Trial, page-29

Within the next few weeks, CSL will have an R&D day. I would suspect that a lot more discussion on CSL112 will occur then, and I also suspect that some of the questions raised on this thread will be answered then as well.

IMO, CSL has a lot going for it, that tends to set it apart from other stocks, hence I suppose that is why I am bullish on it. They are
a) Barriers to entry - there are significant regulatory and cost barriers to entry in this field, hence competition is minimal and margins can be protected.
b) Some of the drugs CSL produce are non discretionary.
c) CSL has one of the best plasma collection supply chains in America. this means that CSL gets "more bangs for its bucks" from every litre of plasma is purchases. (In mining terms - it's C1 cash cost is the best in the industry).
d) CSL knows that it cannot rest on it's laurels and so it's spending on R&D is very high (and risky - remember only 10% of drugs in the R&D pipeline ever make it to market). This R&D spend means that CSL has new products coming to the market all the time. these new products often have orphan status and generate very high margins. All this feeds into growing revenue and NOPAT.
e) The management team is committed and stable. Notice that there are very few personnel changes at the senior management level. This tells you something about the culture of the business.
f) CSL continues to invest through the cycle. It works out where the demand is and then builds the facilities before that demand is realised so that it is ready to meet it.
g) It's capital management is excellent. It buys "cast offs" and normally pays below book value (unlike our miners) and then successfully integrates those businesses into the CSL family.
h) As the western world population ages and as medicine is being used to keep people living longer, the demand for the drugs that CSL produces, will continue to grow.

HT1

P.S. I must admit that I bought CSL a number of years ago. I knew nothing about the company, I thought it had a really high p/e ratio, but the financial press extolled it's virtue. I did no research, no npv, no comparisons. Just bought them on a whim. That was the best decision I ever made in investing.

HT1