The CSL Limited (ASX: CSL) share price is falling amid reports Australia might not be capable of producing mRNA vaccines until 2023.
Right now, shares in CSL are swapping hands for $276.09 – 1.33% less than yesterday’s closing price.
The fall in the CSL share price comes alongside a fairly lacklustre day for the broader market. However, the S&P/ASX 200 Index (ASX: XJO) is currently only down by 0.15%. The All Ordinaries Index (ASX: XAO) has also fallen by only 0.11% today.
Let’s take a closer look at what’s being reported today.
Is CSL winning the race for Moderna?
According to reporting by The Sydney Morning Herald (SMH), the Federal Government is preparing to receive commercial bids from companies hoping to build Australian facilities capable of creating mRNA vaccines. COVID-19 vaccines by Moderna and Pfizer are both examples of mRNA vaccines.
However, the publication claims scientists believe funding for the vaccines’ production is markedly less than what’s needed. Additionally, it reported some estimates put to the government claim it could take 3 years to build a facility capable of producing mRNA vaccines.
Whether delays in creating mRNA vaccines locally are helping drive the CSL share price lower isn’t clear, particularly since it’s already been out of form lately.
SMH reports that CSL is said to be a strong bet to win the bidding process, spurred by its proven capabilities in manufacturing the AstraZeneca vaccine.
One unnamed scientist reportedly said expanding CSL’s facilities to produce mRNA vaccines would be a “no-brainer”.
However, SMH claims the government’s funding promise is far too low for Moderna to consider allowing manufacturing in Australia.
According to SBS, companies interested in receiving funding to create mRNA vaccines must lodge a fully costed approval for a facility to the Federal Government. The facility must be capable of making mRNA vaccines and therapeutic goods over the next decade.
CSL share price snapshot
The CSL share price has been having a tough time on the ASX lately.
It has fallen by around 3% year to date and is also almost 4% lower than it was this time last year.