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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.

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

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