CSL’s new CEO confirms focus on growth

Specialty biopharmaceutical company CSL’s (ASX: CSL) newly installed Chief Executive Officer Mr Paul Perreault has said in an interview with Business Spectator that he will not be stopping the aggressive growth that was a hallmark of his predecessor’s tenure.

While new CEOs taking about aggressive growth could often be a warning sign for investors, in this case investors can take solace from Mr Perreault’s view that there is significant opportunity to optimise what CSL already has rather than using risky acquisitions to achieve growth. In fact Mr Perreault pleasingly appears to have a sound understanding of the risks of acquisition as this comment during the interview shows: “think about when people do acquisitions, look at how and why they do acquisitions. It’s usually done from a position of weakness, not from a position of strength.”

Shareholders will be exciting to learn just how many developed products CSL already has that for one reason or another are being marketed in one region (for example Germany) but are not yet marketed in other regions (for example the USA). This pipeline alone has the potential to provide significant and sustaining growth in sales to CSL for quite some time.

In many ways CSL has a ‘double play’ that peers such as Cochlear (ASX: COH) and ResMed (ASX: RMD) don’t have. Not only can CSL expand into new geographies (as can Cochlear and ResMed) but it can also significantly expand sales of its diverse product pipeline as well.

Interested in our #1 dividend-paying stock? Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”

More reading

Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.