It has been a rough year for shareholders of CSL Ltd (ASX: CSL).
Earlier this week, the biotech giant's share price hit a multi-year low of $140.93 during a broader market selloff.
Even after a modest rebound, the stock is still trading at $142.58, which leaves it down roughly 43% over the past 12 months.
For a company long considered one of the highest-quality businesses on the ASX, that sort of decline naturally raises questions. What exactly has gone wrong, and does the weakness create an opportunity for investors?
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A combination of issues weighing on sentiment and the CSL share price
Part of the explanation comes down to the company's recent performance.
CSL's latest half-year results were softer than many investors had expected. Underlying profit fell 7% for the period and revenue declined slightly, reflecting a combination of operational headwinds and policy changes in some key markets.
The results were also complicated by significant one-off items. CSL recorded around US$1.1 billion in impairment charges related largely to assets within its Vifor and Seqirus divisions, which dragged reported profit sharply lower and weighed on sentiment.
At the same time, investors have been digesting broader changes within the business. The company has been undertaking a major transformation program designed to simplify operations, reduce costs, and improve long-term growth.
Transitions like this can be messy in the short term, even when the long-term goal is to strengthen the business.
Leadership changes have also added to the uncertainty, while competition in certain product categories and policy changes affecting healthcare reimbursement have created additional near-term pressure.
Put all that together and I think it becomes easier to see why CSL's share price has struggled over the past year.
But the long-term story hasn't disappeared
Despite the challenges, I think it is important to remember that CSL remains one of the largest and most sophisticated biotechnology companies in the world.
The company continues to generate billions of dollars in revenue from therapies that treat serious and often rare diseases. Its plasma-derived medicines, vaccines, and iron therapies remain critical treatments for patients globally.
Importantly, the company still expects growth to improve in the second half of the financial year. Management has maintained its guidance for approximately 2% to 3% revenue growth and 4% to 7% growth in underlying profit for FY26, excluding one-off restructuring costs and impairments.
That outlook reflects expectations that growth in key therapies, particularly immunoglobulin and albumin products, alongside newly launched treatments, will help drive a stronger second half.
Has the sell-off created a buying opportunity?
This is where I think the debate becomes interesting.
According to analysts at Morgans, CSL's first-half result was "softer and less clean than expected," with profit declining and impairments weighing on statutory earnings.
However, the broker also noted that the company maintained its full-year guidance despite the challenges, suggesting that the issues appear more related to execution and short-term disruptions rather than structural problems.
In Morgans' view, the outlook is supported by cost reductions, marketing initiatives, new product launches, and diminishing headwinds. The broker continues to rate the stock as a buy with a price target of $241.34. This is almost 70% above the current CSL share price.
Foolish takeaway
There is no denying that CSL's past year has been disappointing for shareholders. A combination of softer results, impairments, leadership changes, and broader market volatility has pushed the share price sharply lower.
But the company still operates a global biotechnology franchise built on specialised therapies, strong research capabilities, and decades of expertise.
If management can execute on its transformation program and deliver the growth it expects in the years ahead, I think the recent selloff could eventually look like an incredible buying opportunity.
