The CSL Limited (ASX: CSL) share price has been a strong performer in recent weeks.
Since this time last month, the biotherapeutics company's shares have risen over 8% to $299.00.
Can the CSL share price keep climbing?
The good news for investors is that it may not be too late to snap up CSL shares.
According to a note out of Citi, its analysts have retained their buy rating and $340.00 price target on its shares.
Based on the current CSL share price, this implies potential upside of almost 14% for investors over the next 12 months.
What did the broker say?
Citi was pleased, but not surprised, to learn that the US Food and Drugs Administration (FDA) has approved CSL's HEMGENIX (EtranaDez) gene therapy for haemophilia B.
The broker expects this to have a neutral impact on a short term basis due to the company already being the market leader for haemophilia treatments. However, it does cement CSL's position in the market, which is good news for the long term. Citi commented:
As expected, CSL received FDA approval for its gene therapy for haemophilia B, HEMGENIX (EtranaDez), the first and only one-time gene therapy approved for haemophilia B.
Whilst an exciting new treatment option for patients, we expect HEMGENIX to be neutral on an NPV basis for CSL given 1) the cannibalization of Idelvion sales (~$650m/~6% of CSL total sales): CSL Idelvion is the current standard of care in haemophilia B with ~47% market share across key markets, and 2) in a defensive move, the therapy was licensed from uniQure in 2021 at a cost of ~US$750m (acquisition+pre-launch costs) + royalties and milestones.
CSL plans to launch HEMGENIX in the US & EU in Q1'23, but it will be a slow and gradual process as the payment models are yet to be finalized (likely to be upfront, with variations in payment models in the EU). Maintain Buy, $340 TP.
Elsewhere, Macquarie responded to the news by retaining its outperform rating and lifting its price target by 4.1% to $343.00. The broker expects the therapy to have a positive impact on its earnings over the long term and has boosted its valuation to reflect this.
