This follows the release of a COVID-19 update by the biotherapeutics giant.
What did CSL announce?
This morning CSL provided investors with a comprehensive update on how the COVID-19 pandemic is impacting its business.
According to the release, plasma collections are expected to be impacted by the pandemic.
However, the company is optimistic it will be able to mitigate this through a number of initiatives. These include collection centres being designated essential critical infrastructure, safe passage letters provided to staff and donors, and FDA initiatives to release plasma earlier in the cycle.
In addition to this, it notes that it has the potential to accelerate plasma collection post crisis and expects an increase in new donors due to the economic downturn. If this eventuates, it should limit any impact to its sales in FY 2021.
CSL also provided an update on its commercial activities. It reminded investors that the majority of its products are life saving or life extending and not discretionary.
As a result, current demand is consistent with expectations. Furthermore, requests for IVIG are elevated and influenza vaccine demand is strong.
Positively, there are currently no items out of stock and no interruptions to its supply chain.
One small negative is that there are modest delays expected in capital projects and clinical trials. However, management is aiming to accelerate activity post crisis to ensure there are no material changes to its original plan.
CSL has become one of only a handful of companies that have been able to maintain their guidance in FY 2020. Management has reaffirmed its FY 2020 profit guidance of ~US$2,110 million to US$2,170 million in constant currency.
The company also notes that it is in a strong capital position with an estimated US$1.1 billion of available liquidity.