The CSL Limited (ASX: CSL) share price is down this morning at $299.54, 0.42% below yesterday's close.
Meantime, the S&P/ASX 200 Index (ASX: XJO) is also down 0.66%.
Today is the official opening day for CSL's brand new $900 million blood plasma processing plant at its existing manufacturing site in Melbourne.
Image source: Getty Images
New plant enables a 9-fold increase in production
According to The Australian, the plant represents about half of CSL's current capital investment budget in Australia. The benefit will be a nine-fold increase in the company's Australian plasma processing capacity.
This means more products can be made and sold, inevitably boosting earnings for the company.
CSL collects plasma from blood donors to make blood therapy treatments for people with immunodeficiencies, neurological disorders, shock, and burns. They are also used for transfusions in hospitals.
To make these biotherapies, the plasma needs to be separated into its individual components. This process is called fractionation and that's what will happen at the plant.
What does management say?
CSL CEO Paul Perreault said the plant "ensures we are developing the skills and expertise locally to support advanced manufacturing in Australia".
He said:
Over the past 10 years, CSL has invested close to $2bn into Broadmeadows, helping transform the site into an important part of CSL's global manufacturing network and a significant contributor to the company's success in the decades to come.
CSL has also built a second new fractionation facility in Marburg, Germany at the same time.
Also in Melbourne, CSL is in the midst of constructing a next-generation influenza vaccine manufacturing facility at Tullamarine. The facility will use cell-based technology to create vaccines.
CSL is also building a new global headquarters and a research and development centre.
Brokers say buy on CSL share price
CSL has been attracting a lot of broker love lately. Many analysts think the CSL share price is a buy.
Wilson Asset Management equity analyst Anna Milne says CSL is her top ASX healthcare share pick for 2023 and "a stock that's hard to fault".
Wilsons is tipping a 12-month share price target of $327 and has an overweight rating.
As my colleague James reports, Citi says buy with a share price target of $340. Macquarie has an outperform rating with a price target of $343.
CSL has been in the headlines lately following the United States Food and Drug Administration's approval of its new haemophilia B treatment, Hemgenix.
It's the first and only one-time gene therapy for adult patients and will replace weekly treatments for many patients.
CSL will reportedly sell it for US$3.5 million per dose, making it the world's most expensive drug.
