How is the CSL (ASX: CSL) share price performing in the age of Omicron?

The last few months have been tough for the biotech giant.

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a medical person in protective clothing, rubber gloves, a mask and hair covering holds a digital thermometer up to the front of the picture as if to take someone's temperature.

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Key points

  • The CSL share price has slumped 13% since the Omicron variant emerged
  • The dip was likely mostly driven by its acquisition of Vifor Pharma and subsequent capital raise
  • Previously, the biotechnology company’s stock has weathered the pandemic reasonably well

While the COVID-19 pandemic wreaked havoc on many ASX stocks, the CSL Limited (ASX: CSL) share price has traded relatively flat throughout the period.

Of course, sentiment for the company was likely boosted by its manufacturing of the AstraZeneca (NYSE: AZN) COVID-19 vaccine. Though, it was hindered by the impact the pandemic has had on plasma collections.

Despite a rocky performance, the CSL share price gained around 2% over the course of 2020 and was boosted another 2% last year.

For context, the S&P/ASX 200 Index (ASX: XJO) fell 3% in 2020 and gained 13% in 2021.

At the time of writing, the CSL share price is $272.19, a fall of 0.56% in early trading.

Let’s take a look at how the biotechnology giant’s stock has been performing since the Omicron variant emerged.

How has the CSL share price traded since Omicron emerged?

The discovery of COVID-19’s Omicron variant was first announced to the world on 25 November.

Then, South Africa’s National Institute for Communicable Diseases announced it had identified a then-unnamed variant responsible for just 22 infections in the nation.

Of course, the variant soon reached Australia and the rest is history. But there’s hope we might be out of the woods sooner rather than later.

Federal health minister Greg Hunt said on Sunday, the current Omicron outbreak may be peaking in New South Wales and the ACT and the rest of the country will likely follow suit in coming weeks.

Since news of the Omicron variant’s emergence, the CSL share price has tumbled 13%. Though, it hasn’t simply been the new virus strain weighing it down.

It announced a massive US$12 billion takeover after close on 14 December. The biotechnology giant will be purchasing Vifor Pharma, a Swiss pharmaceutical company specialising in the treatment of iron deficiency.

Unfortunately, the market didn’t react favourably to the news. It sent the CSL share price tumbling 8% after the company exited a trading halt put in place as it underwent a $6.3 billion capital raise.

While the stock mostly recovered over following sessions, it has slumped another 6% year to date.

Should you invest $1,000 in CSL right now?

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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