CSL share price lower despite UK Government deal

CSL has got the UK's back if there's another pandemic.

| More on:
A smiling young woman sits on a bridge in London checking her online shopping, indicating share price movement for ASX BNPL shares overseas

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The CSL Limited (ASX: CSL) share price is falling on Wednesday.

In morning trade, the biotherapeutics giant's shares are down 1.5% to $251.94.

Why is the CSL share price falling?

Investors have been selling the company's shares today after broad market weakness offset the release of some potentially positive news.

At the time of writing, the ASX 200 index is down 0.25% following a very poor night of trade on Wall Street.

What did CSL announce?

Overnight, CSL announced a deal between its CSL Seqirus business and the UK government.

According to the release, CSL Seqirus will develop and supply pandemic influenza vaccines in the event of an influenza pandemic.

Under the terms of the agreement, should an influenza pandemic be declared, the UK government would have the option to purchase more than 100 million doses of pandemic vaccines from the CSL Seqirus manufacturing plant in Liverpool in a rapid timeframe.

CSL Seqirus' global executive director for pandemic, Marc Lacey, commented:

CSL Seqirus is a global leader in pandemic influenza preparedness, and we're pleased the UK government will continue to partner with us in preparing to provide protection against the potential of a flu pandemic. This agreement will help to ensure the UK maintains robust preparedness and rapid response capabilities for this potential future threat.

Lorna Meldrum from CSL Seqirus added:

CSL Seqirus has been an active and reliable partner to the UK across pandemic influenza vaccines for many years. We are proud to play a continued part in ensuring ever higher levels of influenza preparedness in the UK and globally.

No financial terms were disclosed for the deal.

While this is good news for the company, let's hope that CSL Seqirus won't be needed!

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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 Scott Phillips.

More on Healthcare Shares

Scientist with headache, stress and fatigue with woman, overworked with overtime for science breakthrough. Medical research, scientific innovation and senior female, burnout and migraine in lab.
Healthcare Shares

Why is the Mesoblast share price in a trading halt?

Is Mesoblast raising funds again? Let's find out.

Read more »

A woman reclines in a comfortable chair while she donates blood holding a pumping toy in one hand and giving the thumbs up in the other as she is attached to a medical machine to collect her blood donation.
Healthcare Shares

The CSL share price return tripled the ASX 200 in November

November saw a very healthy return for CSL shares.

Read more »

A male doctor wearing a white doctor's coat shrugs and holds his hands up to indicate the unimpressive CSL share price as a result of OOVID-19
Share Market News

Here's why you might have just bought Healius shares

Two of the most popular super funds just loaded up on this healthcare stock.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

Here's why this ASX 200 healthcare stock is roaring 13% higher on Wednesday

This healthcare company is outperforming every other stock within the ASX 200 today.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop

Could CSL stock be a millionaire-maker at $261

Does the exceptional biotech company still harness the power to make an investment today worth a million in the future?

Read more »

Two happy scientists analysing test results in a lab
Healthcare Shares

Why are Mesoblast shares charging 5% higher today?

This beaten down biotech is having a strong session. But why?

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Healius share price rallies amid corporate reset

An outgoing chair and a revitalised balance sheet. Healius is undergoing a makeover.

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Imugene share price jumps 32% on FDA news

Here's why this biotech is having a strong start to the session.

Read more »