CSL Reports Decline in Vaccine Sales Amid Falling Immunization Rates

By Christine Chen

(Reuters) – Australian biopharmaceutical company CSL (OTC:CSLLY) announced on Tuesday that decreasing immunization rates in the U.S., its largest market, negatively impacted its vaccine sales and first-half profit growth, causing shares to drop.

CSL, the world’s second-largest maker of flu vaccines, highlighted concerns that this decline in immunization rates poses a public health risk for the U.S.

Revenue from CSL’s Seqirus vaccine unit declined 9%, reaching $1.66 billion in the half-year ended December 31, 2024.

CEO Paul McKenzie stated that post-COVID vaccine apathy among 18-to-64-year-olds and reduced vaccine access contributed to a challenging operating environment. He mentioned, “Performance has been negatively impacted by the significant decline in immunization rates in the U.S.”

He added that the incidence of influenza and hospitalization rates are increasing, thereby heightening the public health risk.

CSL’s results coincide with the nearing Senate confirmation of U.S. President Donald Trump’s health department nominee, Robert F. Kennedy Jr., a noted vaccine skeptic.

For the first half of the 2025 financial year, CSL Seqirus revenue was 15% below analysts’ forecasts, leading to earnings that also fell short of expectations.

Overall net profit grew 6% to $2.01 billion, propelled by a 10% rise in revenue from CSL’s primary blood-plasma business, Behring. However, this profit was slightly under analysts’ expectations of $2.09 billion.

CSL shares dropped by 3.5% by midday Tuesday, against a flat overall market.

RBC Capital Markets analyst Craig Wong-Pan noted CSL’s performance was weaker than anticipated, raising doubts about the company’s ability to meet its FY25 NPATA guidance.

Nonetheless, CEO McKenzie expressed confidence that the performance of CSL’s Behring and Vifor units will bolster full-year profit between 10% and 13%, estimating it to be between $3.2 billion and $3.3 billion.

The Behring unit, responsible for about 70% of CSL’s revenue, witnessed a 15% increase in immunoglobulin sales, reaching $3.17 billion. Additionally, the recently acquired Vifor unit, which had previously impacted earnings due to competition with generics in Europe, also reported improved sales and an expansion of its product offerings.

The Vifor unit was acquired in 2022 for $11.7 billion and has since been focusing on enhancing its competitive edge.