CSL Ltd (ASX: CSL) shares are marching higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) biotech stock closed yesterday trading for $180.08. In morning trade on Wednesday, shares are changing hands for $181.73 apiece, up 0.9%%.
For some context, the ASX 200 is up 0.1% at this same time.
This comes as investors mull over news that the Aussie healthcare giant is joining a host of other international pharmaceutical companies in expanding its United States-based manufacturing capacity.
That expansion is, in part, intended to ensure an exemption of US President Donald Trump's threatened, but yet to be implemented, tariffs on imported pharmaceuticals.
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ASX 200 biotech stock to invest $2.3 billion
CSL shares could garner long-term support with the company announcing that it will invest around US$1.5 billion (AU$2.3 billion) to manufacture plasma-derived therapies in the US.
The big investment plans are in line with what we've seen over the past seven years. Since 2018, CSL has invested more than US$3 billion in the US, which it noted has created thousands of jobs across 44 states.
The new investment, announced overnight, will further expand the company's US footprint over the next five years, providing a growth path for CSL shares.
Management said the planned US$1.5 billion in new investments reflects CSL's commitment to meet the growing clinical need for immunoglobulin (Ig) over the long term.
The company also noted this will create "hundreds of high-quality American jobs, strengthen US manufacturing capabilities of plasma-derived therapies, and help secure the US medicine supply chain".
The planned investments remain subject to approval by CSL's board of directors.
Commenting on the company's US manufacturing expansion plans, CSL managing director and CEO Paul McKenzie said:
The US is the world's leading source for plasma, the main component of plasma derived therapies. These important medicines are often the most effective or only therapies available for many rare or serious diseases.
By expanding our onshore production capacity in the US, we are deepening our commitment to patient care, creating high-quality jobs and driving innovation in the US.
McKenzie noted that the US$3 billion CSL has already invested into its US operations since 2018 has created more than 6,500 new American jobs.
CSL now has almost 19,000 employees in the US, which is about 65% of the company's total workforce.
What's been happening with CSL shares?
As you're likely aware, CSL has had a tough year.
Amid downgrades to full-year revenue and growth guidance spurred by weakness in the US influenza vaccine market, and the on-again-off-again plans to demerge the CSL Seqirus business, CSL shares are down 33.5% since this time last year.
