Hey StockholmRod, I certainly agree with your sentiments re RFK Jr, however I don't think a share buy back is on the cards nor is it the most prudent course of action.
CSL has US$7.8 billion in contingent liabilities not currently being shown on their balance sheet (refer financial accounts - other contingent assets and liablities), I suspect US$4 billion of that contingent liabilitty will need to be paid to CSL's business partner Arcturus Therapeutics (ticker: ARCT) within a year or two, having developed Kostaive (mRNA Covid vaccine) which has been approved in the EU and on sale in Japan. The final hurdle will be the holy grail, US FDA approval, upon which, I think the full amount will be payable; which is probably why CSL has been deleveraging thier balance sheet.
Speaking of Arcturus, they don't currently have enough revenue to support their operations, their R&D is being funded by CSL milestone payments and their royalties from Kostaive are not currently material, hence their market cap of approximately US$400M.
Now, my question is (and this should be raised at the upcoming AGM in October), has the board considered taking over Arcturus now - at a cost of around US$400M + premium and associated costs over paying US$4 billion in milestone payments to Arcturus?
Arcturus' R&D in mRNA influenza and Covid vaccines is in the same direction CSL is headed, so a merger / takeover on face value would appear logical. Additionally, the takeover could be seen as a "white knight" for Arcturus.
But anyway, that's all speculation on my part as it could be de-railed at the starting gate by the US FIRB and that crazy guy in the white house.
In the meantime, I think CSL should continue to deleverage their balance sheet and ride out the storm till there is some semblance of sanity in the US.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)