CSL share price cracks under Vifor Pharma acquisition delay

a medical researcher rests his forehead on his fist with a dejected look on his face while sitting behind a scientific microscope with another researcher's hand on his shoulder as if giving comfort.a medical researcher rests his forehead on his fist with a dejected look on his face while sitting behind a scientific microscope with another researcher's hand on his shoulder as if giving comfort.

The CSL Limited (ASX: CSL) share price is being bled on Thursday amid delays to its big A$17.2 billion Vifor acquisition.

Shares in Australia’s third-largest listed company are coming under pressure as investors absorb the latest information.

At the time of writing, CSL shares are trading 2% lower at $270.63 apiece. For context, the S&P/ASX 200 Index (ASX: XJO) is off the mark by 0.79% this morning.

Slower than first thought

When initially announced to shareholders in December last year, CSL expected the acquisition of Swiss therapeutics giant, Vifor Pharma, to be completed by June. However, as per today’s announcement, this has fallen off track — pressuring the CSL share price.

According to the release, the original completion date will be pushed back due to the regulatory approval process. While no specific details were shared, the biotech behemoth now expects the process will take a few more months.

In the Vifor Pharma acquisition presentation provided in December, CSL outlined ‘completion risk’ as a key risk. This is where the company noted the deal requires foreign direct investment and other regulatory filings and approvals in certain key jurisdictions.

It appears some investors are cautious of the deal falling through. In turn, the CSL share price is weakening on the news today.

However, today CSL mentioned it remains confident in the deal being done.

CSL remains confident of completing its acquisition of Vifor Pharma AG and looks forward to expanding its presence in the rapidly growing nephrology market, as well as leveraging the companies’ combined expertise to continue to deliver innovative solutions to rare and serious illness.

How has the CSL share price fared?

While the CSL share price has held up much better than some of its healthcare peers, the returns so far this year aren’t exactly astounding.

Since the beginning of 2022, CSL shares have tumbled 8.5%. Although, this is far better than the 40% fall exhibited by Fisher & Paykel Healthcare Corp Ltd (ASX: FPH). Likewise, it is a welcomed return compared to the 20% dent to Ansell Limited (ASX: ANN).

The post CSL share price cracks under Vifor Pharma acquisition delay appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. The Motley Fool Australia has recommended Ansell Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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