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‘Competitive advantage’: New flu vaccine research a focus for CSL

September 6, 2021 — 5.00am

Biotechnology giant CSL will focus on research into new vaccine technologies including mRNA influenza vaccines as it looks to further boost the value of its Seqirus business.

The $139 billion biotech told investors in its full-year report released on Friday that it would double down its research focus into technologies that look set to play a bigger role in the multibillion-dollar influenza market.

This includes cell-based flu vaccines, which use animal cells to grow flu viruses and take less time to make, as well as development of self-amplifying mRNA, the ‘next generation’ of the technology used to make the Pfizer and Moderna vaccines.

The company said that successful innovation in areas like self-amplifying mRNA would deliver competitive advantages, while failure to capitalise on these new technologies would “diminish growth in this product sector”.

Seqirus generates just under $US2 billion of CSL’s $US9.98 billion in annual revenue, but its growth has been a major bright spot for the company. CSL bought out the Novartis influenza business for $US275 million in 2014 and conducted a swift and successful turnaround.

Revenues in the influenza business jumped 34 per cent due in 2021 due to strong demand for products, but CSL is aware of increasing competition in the flu vaccine space.

Messenger-RNA vaccines have risen in prominence throughout the COVID-19 pandemic and flu vaccines may one day use this technology. Meanwhile, other drugmakers like US firm Novavax are starting to consider the development of combined influenza and coronavirus vaccines.

CSL has been clear it does not intend to make its own COVID-19 vaccine at this stage, but management notes in the annual report that the company will be focusing on research and development to ensure Seqirus and its products keep up.

CSL says its mRNA research may lead to products that are more stable and effective than products already on the market.

“When administered, self-amplifying mRNA has the capacity to replicate (or amplify) itself. As a result, far less mRNA may be required in the vaccine formulation to generate equivalent antigen production and an effective immune response,” management explained in its annual report.