The CSL Limited (ASX: CSL) share price is currently up by 3%. It has been reported that its new influenza vaccine has been approved by regulators for younger people.
CSL is one of the world’s largest biotech businesses with a large vaccine division.
Latest win for CSL
The Australian has reported that the new generation of CSL’s influenza vaccine has received regulatory approval.
This is the new type of cell-based influenza vaccine called Flucelvax Quad. According to CSL, this is significantly more effective than the protein-based vaccines that are grown in eggs and it can also be produced at a significant scale at shorter notice.
It was a year ago that CSL received approval for the vaccine’s general use. The ASX healthcare share has sold over 100 million doses of it since the Therapeutic Goods Administration gave approval.
This vaccine has now been approved for children down to the age of 2 years old. It was reported by the newspaper that sales “are expected to soar”.
This could be an important factor to reduce hospitalisations
The Australian quoted CSL’s Jonathan Anderson, who is the head of medical affairs at Seqirus – the vaccine division of the ASX healthcare share.
With our healthcare system facing pressure from COVID-19 and influenza this winter, achieving high influenza vaccination coverage is crucial in ensuring we help to reduce the strain on hospitals.
This is even more important this year, and the expanded approval of Flucelvax Quad will be timely to give patients and health care professionals additional options.
The fact that much younger children are now eligible for this could be helpful because children that are under five are at more risk of severe flu, according to NSW Health.
Is the CSL share price an opportunity?
Since the start of 2022, the CSL share price has fallen by 13%.
During that time, the healthcare business has reported its FY22 half-year result. Whilst revenue increased 4%, net profit after tax (NPAT) fell by 5% in constant currency terms to $1.76 billion. The company said that there was a strong performance by the influenza vaccine business, Seqirus, which saw seasonal flu vaccine sales up 20%.
A new cell culture influenza vaccine facility has commenced construction in Australia.
CSL has received strong support from Vifor shareholders for the acquisition and plans to declare the offer successful. It said 74% of the shares have been tendered. The regulatory approval process for the acquisition is “on track” as well and management is confident that the remaining conditions will be satisfied.
Citi thinks that the CSL share price is a buy, with a price target of $335 – that’s a potential upside of around 30%.
On Citi’s numbers, the CSL share price is valued at 30x FY23’s estimated earnings.
The post CSL (ASX:CSL) share price lifts following new regulatory approval appeared first on The Motley Fool Australia.
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended 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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