Why did the CSL share price leap 7% in November?

The CSL Limited (ASX: CSL) share price had a good run in November.

The ASX biotech share opened at $280.68 on 1 November and closed at the end of the month at $300.11, a 6.92% gain.

The company’s shares are currently trading lower at $298.35 each, down 0.59% on the day.

CSL pulled ahead of the S&P/ASX 200 Health Care Index (ASX: XHJ) in November, which gained 5.97% over the month.

It also beat the broader market, as the S&P/ASX 200 Index (ASX: XJO) grew 6.13% over the same period.

So let’s go over the highlights of the month for CSL to figure out why it might have outperformed its peers.

What happened to the CSL share price in November?

Despite the gains by the CSL share price, it was a quiet month in terms of news from the company.

On 2 November, the company announced it had entered into a collaboration and licensing agreement with Arcturus Therapeutics Holdings Inc (NASDAQ: ARCT).

In a nutshell, the collaboration will leverage CSL’s expertise in mRNA drug product development and manufacturing and Arcturus’s capabilities in the large-scale delivery of clinical supplies. This combination aims to enable CSL to deliver mRNA vaccines to the market at an accelerated rate and with greater efficiency.

The vaccines will be used to treat diseases such as the flu, COVID-19, and others.

CSL gives R&D investor presentation

A day after CSL announced its agreement with Arcturus, CSL published an investor presentation covering its research and development pipeline.

The company underlined its commitment to further developing its mRNA vaccines and also said it is working towards treatments for other diseases. These include haemophilia B, a rare inherited disorder that prevents the body from forming certain proteins involved in blood clotting.

Its proposed gene therapy, which is the first of its kind, is currently being reviewed by the United States Food and Drug Administration (FDA) and the European Medicines Agency (EMA). If approved, the therapy could provide a safe and effective treatment option for patients with haemophilia B.

Experts bullish on CSL share price

After these updates were posted, CSL enjoyed positive coverage from experts. The main catalyst was its R&D report which could have helped to give the CSL share price some buoyancy throughout the month.

Morgans reviewed CSL’s R&D presentation and slapped the company with a $312.20 price target, giving it a possible upside of 4.6%. Meanwhile, Citi was even more optimistic, giving the share a target of $340, or almost 14% upside.

Goldman Sachs was the least optimistic of the three, giving CSL shares a price target of $291 apiece. This means it has a potential downside of 2.5% at the time of writing.

Additionally, at the end of the month, Switzer Financial Group director Paul Rickard said he believed CSL has the momentum to bust through the $300 price level in the foreseeable future. He also praised CSL’s Vifor acquisition, which was completed in August.

The post Why did the CSL share price leap 7% in November? appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Matthew Farley 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. 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 Scott Phillips.

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