CSL wins contracts

The company is also getting back into influenza vaccines.

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

CSL Limited's (ASX: CSL) bioCSL branch has been busy this week. The company issued back-to-back releases announcing new vaccine distribution contracts and its re-entry into influenza vaccine production for Australia. Here's what you need to know.

On Monday, CSL notified shareholders that the company has successfully won two contracts (one with New South Wales Health and one with the Western Australian Department of Health) to "provide storage and distribution services" for each government's vaccine programs.

With a combined value of $6.8 million, the announcements aren't massive market movers by themselves, but they might serve as signals for additional (and potentially much larger) government contracts to come.

BioCSL will work with West Australia under a three-year contract, while its partnership with New South Wales will last for two years. "bioCSL is pleased to be able to support the secure supply of important vaccines under the National Immunisation Program, helping protect the health and wellbeing of Australians," said VP of Operations Stephen Marlow in a statement.

On Tuesday, bioCSL announced that it's back in the influenza production business after Australians upped their demand this season. In the first two weeks of April alone, General Manager Dr. John Anderson noted significant demand jumps in both public and private markets. bioCSL was revamping its vaccine in preparation for the Northern Hemisphere season when the demand spike pushed the company to refocus efforts on local markets.

The company expects to have additional doses ready by June, which will be distributed first and foremost to age-appropriate at-risk groups. Currently, CSL maintains a unique geographic advantage as the only influenza vaccine manufacturer in the Southern Hemisphere. "Restarting production of Southern Hemisphere influenza vaccine is a significant undertaking, but as Australia's only on-shore manufacturer we are committed to responding to local needs," said Anderson in a statement.

Want to balance riskier growth stocks with high yielding ASX shares? Get "3 Stocks for the Great Dividend Boom" in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!

More reading

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.  This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. Motley Fool contributor Justin Loiseau has no position in any stocks mentioned in this article. You can follow him on Twitter @TMFJLo.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »