The CSL Limited (ASX: CSL) share price has been a very strong performer on Wednesday.
In afternoon trade, the biotherapeutics giant's shares are up a sizeable 8% to $262.20.
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Why is the CSL share price charging higher?
Investors have been bidding the CSL share price higher today following the release of its half year results.
For the six months ended 31 December, CSL reported a 4% increase in constant currency revenue to US$5,993 million. This comprises a 2% decline in CSL Behring revenue to US$4,216 million and an 18% lift in Seqirus revenue to US$1,592 million.
However, due to margin weakness caused largely by plasma collection headwinds, CSL posted a 5% constant currency decline in net profit after tax to US$1,722 million.
So why is the CSL share price rising?
A couple of items appear to have given the CSL share price a boost today. The first is positive commentary regarding the outlook for plasma collections.
CSL's CEO, Paul Perreault, commented: "Our core franchise, the immunoglobulin portfolio, has been impacted by the industrywide constraints on collecting plasma in FY21 during the course of the global pandemic. We have responded by implementing multiple initiatives in our plasma collections network, which has given rise to significant improvement in plasma volumes collected. Given the long-term nature of our manufacturing cycle, this will underpin stronger Ig and albumin sales going forward."
What else?
Also giving the CSL share price a lift was its guidance for FY 2022.
Although the company has reaffirmed its guidance for a net profit after tax in the range of US$2.15 billion to US$2.25 billion at constant currency, this guidance now includes US$90 million to US$110 million in transaction costs related to the Vifor Pharma acquisition. Whereas its prior guidance did not include these costs.
The response
Goldman Sachs has responded to the company's results.
It commented: "Solid headline beats and effective +4-5% guidance upgrade despite mixed franchise performance."
Goldman doesn't currently have a rating on the CSL share price. This is due to it assisting with the aforementioned Vifor Pharma acquisition.
