The CSL Limited (ASX: CSL) share price has rebounded strongly since hitting a 52-week low of $242.00 in early March. The company is pushing forward with its locally manufactured COVID-19 vaccine rollout and implementing initiatives to restore plasma collections levels.
By yesterday’s market close, the global biotech’s shares finished the day 1.4% higher at $269.83.
With the latest developments, is the CSL share price finally on the road to recovery? Let’s take a look at what’s been happening for the biotech giant.
Vaccine update
Investors have buying CSL shares ahead of renewed optimism that the worst is behind the company.
According to the Australian Therapeutic Goods Administration (TGA), the first four batches of Melbourne-manufactured AstraZeneca COVID-19 vaccine have been released. This follows the TGA’s approval of the first 832,200 doses that were cleared Tuesday night. So far, almost 350,000 people in Australia have received a COVID-19 vaccination.
On Monday, the country moved to expand its COVID-19 vaccine eligibility to phase 1b group. This now includes elderly adults aged over 70 years, indigenous Australians, adults with pre-existing medical conditions, and other healthcare workers. However, there have been reports that general practitioner clinics have been overwhelmed with patients seeking the vaccine.
Despite the teething problems, it’s expected that, in the coming weeks, these concerns will ease. CSL plans to produce 1 million AstraZeneca COVID-19 vaccines each week up to a total of 50 million doses.
What about plasma collections?
While plasma collections have been heavily impacted by COVID-19, CSL has implemented a number of initiatives to incentivise blood donations. These include the use of social media influencers and the increase of donor compensation to as much as $700 per month. In addition, the company revealed plans to open up 12 new collection centres during the first half of FY21.
As world governments hastily inoculate their populations against COVID-19, experts predict that social norms will gradually return sometime in late 2021 to early 2022. Thus, if restrictions in the movement of people are lifted, CSL could find increasing numbers of blood donors returning to its collection centres.
CSL share price summary
The CSL share price has lost nearly 11% of its value when compared to this time last year. Year to date, the company’s shares are down by around 5%. CSL shares are also currently trading nearly 19% off their 52-week high of $332.68 reached in April last year.
On valuation grounds, CSL commands a market capitalisation of roughly $122.8 billion, with more than 455 million shares outstanding.
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Aaron Teboneras owns shares of CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. 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 Bruce Jackson.
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