CSL Limited (ASX: CSL) shares are pushing higher on Monday.
At the time of writing, the biotherapeutics giant's shares are up 0.5% to $276.85.
Why are CSL shares rising?
CSL shares are rising on Monday after brokers responded positively to the company's research and development (R&D) update.
One of those brokers was Morgans, which has responded by retaining its add rating and $312.20 price target on the company's shares.
Morgans was pleased with the update and notes that a decent proportion of the pipeline has the potential to become standard of care treatments. It commented:
Internal efforts and the Vifor acquisition have seen the R&D pipeline grow c70% with the majority late-stage programs. Management is optimistic of the future "conservatively" estimating at least 10 compounds (c20% of the total pipeline) having the potential to be standard of care for the targeted patient group.
Key catalysts include: potential approval and launch of the first-ever hemophilia B gene therapy EtranaDez; Phase 3 data for anti-FXIIa antibody garadacimab in HAE; and Phase 2 recruitment completion of CSL112 for reducing secondary heart attacks.
What else are brokers saying?
The team at Citi was equally positive and has retained its buy rating and $340.00 price target. Like Morgans, the broker has highlighted the CSL112 therapy as a key highlight. It stated:
CSL held its annual event updating the market on its R&D programs. The R&D budget is significant at US$1.16bn in FY22 or ~11% of revenue. CSL will continue to spend ~10-11% of revenue on R&D annually. The pipeline now includes assets from recently acquired Vifor with two assets in Phase 3. Our $340 TP includes $22.40 for the R&D portfolio (down from $23 on delays) – the main asset remains CSL112 (cardiovascular) at $20/share on which we will get Phase 3 data in Q1 CY24. Maintain Buy, $340 TP.
Finally, Goldman Sachs responded by maintaining its neutral rating and $291.00 price target. Its analysts note that the garadacimab (CSL312) product has the potential to be a "pipeline in a product" thanks to multiple end use possibilities. The broker explained:
CSL312 is a humanised anti-factor XIIa monoclonal antibody in development for multiple indications including as a subcutaneous therapy for HAE, with the potential for administration every 4 weeks (vs. every 2-3 days for Haegarda). Given its early position in the coagulation cascade, there is also potential application in various other disorders (including fibrosis, cardiovascular and inflammatory indications).
