The CSL Ltd (ASX: CSL) share price is treading into green territory today. A sight that is foreign, after a week of red days on the market for the biotech giant. Coincidentally, CSL’s Chief Executive Officer, Paul Perreault addressed the AFR’s Business Summit this afternoon.
At the close of trade today, the CSL share price is 1.69% higher at just over $250 a share.
CEO’s Business Summit comments
Anytime a CEO gives a public address, it can give valuable insights into the company’s current operations. Mr Perreault joined other distinguished speakers, including Qantas Airways Limited (ASX: QAN) CEO, Alan Joyce; and Commonwealth Bank of Australia (ASX: CBA) CEO, Matt Comyn.
Mr Perreault emphasised the key to recovering from COVID-19 is through investments.
We have to invest in things that will bring scale to things we operate but also bring scale beyond our borders. The government has to understand that and try to help with that, especially with innovation.
In addition to these comments, the CEO went on to explain the situation in the US, “Some small businesses have disappeared, and will not come back. Some larger businesses are doing okay, but there will be some businesses that will struggle to come out of this economic climate.” CSL’s US staff are described to be drained, along with the rest of the public due to the situation.
Mr Perreault detailed that the focus for CEOs must remain on their people.
CSL share price and recent developments
The CSL share price has been in free fall over recent weeks but has also been suffering a longer-term decline as well. Since late February, the company’s value has dropped a staggering 15%. Even more unsettling, the biotech has wiped nearly 22% off its market capitalisation since November 2020.
Recent news of the EU interfering with Australia’s supply of the AstraZeneca vaccine hasn’t done much for the price either. Despite CSL being Australia’s local manufacturing partner for the vaccine, the possible additional reliance on CSL has not been reflected in the share price.