double digit earnings growth, page-7

Australia's CSL tanks as Novo Nordisk's kidney trial success stokes competition concerns

12 10 2023 04:36pm AEDT

By Archishma Iyer
Oct 12 (Reuters) -
Shares of biotechnology firm CSL fell to afour-year low on Thursday, after rival Novo Nordisk's Ozempic drug showed early signs of success in delaying theprogression of kidney disease in diabetes patients.
Shares of CSL closed 5.7% lower at A$239.77, their lowestsince Oct. 10, 2019, after falling 6.7% earlier in the session.The stock also marked its worst intraday session in four monthsand was the top loser on the benchmark.
CSL's Vifor segment, which includes therapies for kidneydiseases and iron deficiencies, faces concerns of competition inthe segment after Ozempic's early trial success, analysts said.

The Danish drugmaker on Tuesday said it will stop the trialof the drug ahead of schedule because it was clear from aninterim analysis that the treatment would succeed.
The news led to a sharp fall in dialysis providers globally.
CSL Vifor contributed at least 15% of the consolidated grouptotal revenue of $13.31 billion for the fiscal year 2023,according to their annual report.
"I believe the selloff today is being driven on this newsfrom Novo Nordisk which may affect Vifor earnings," ShanePonraj, an analyst from Morningstar said.
"At this stage, it is still unclear to what extent CSL'searnings could be impacted, but the mere presence of morecompetition was enough to put downward pressure on the stock,"Tim Waterer, chief market analyst from KCM Trade said.
Australian healthcare stocks <.AXHJ> ended 4.5% lower, theirlowest closing level since Oct. 4, 2019, with sector majorsCochlear , Sonic Healthcare and Resmed dropping between 0.2% and 5.1%.
(Reporting by Archishma Iyer in Bengaluru; Editing by Varun HK)