CSL Trading Update

Submitted by Craig Strzelecki on 15 May, 2007 - 19:07

Sharemarket analyst Citi Investment Research have provided a trading update for CSL: Grifols the world's fourth largest plasma products fractionator and largest in Europe, has reported its 1Q results, up 15.2%. Bioscience revenue was driven by albumin, IVIG & FVIII price strength. Channel checks indicate that pdFVIII prices remain firm in Europe. Baxter, Grifols and BPL all appear to be diverting product into Russia. This is positive for CSL's European prices. Grifols to Take Over Management of Four USA Plasma Centres: Grifols has 77 plasma collection points in the USA post the four new management centres which will increase Grifol's US supply by 7.5% to 2,150,000 litres (US sales 37%). This is not new plasma supply however, but vertical integration by Grifols of existing global supply. The analyst's are constantly monitoring plasma supply chains for evidence of increasing plasma supply levels. To date, no upturn is evident. Logistics Chain More Transparent: Grifol's strategy of capturing more plasma collection sources reiterates the analyst's earlier research which indicates consolidation of world plasma supplies by the top five fractionators as they each seek to become more self sufficient in plasma supply. This consolidation has made the plasma chain more transparent. CSL and Baxter are the largest two fractionators. Comparative Efficiency Favours CSL: CSL processes 3.5m litres and generates $A2,707m, or $A773 per litre: Grifols processes 2.0m litres and generates EUR570m, or $A464 per litre, although this is affected by legacy Plasmacare contracts. Grifols is increasing its USA fractionation capacity by 700k litres, to take global capacity to 4.3m litres.

CSL Limited is listed on the Australian Stock Exchange (ASX) under stock code CSL. You can view their investor website here. CSL was listed on the ASX on 8 June, 1994. Elizabeth Alexander is the chairman for CSL and Brian A McNamee the CEO. This company is a global, specialty biopharmaceutical company that develops, manufactures and markets products to treat and prevent serious human medical conditions. They are involved in the development, manufacturing and marketing of pharmaceutical and diagnostic products, cell culture media and human plasma fractions. A past recommendation for CSL. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. You can use Instalment Warrants to trade CSL. Check your charts and good luck with your share trading!