FINC 5001 - CSL Limited: Financial Analysis, Valuation, and Prospects

This report offers a concise overview of CSL Limited (Commonwealth Serum Laboratories Limited), a global biotechnology and vaccine manufacturing company. It highlights CSL's core functions, including research, innovation, production, and marketing of biotherapies and vaccines, and its operational segments, CSL Behring and Seqirus. The report also touches upon CSL's historical milestones, such as being the first producer of insulin in Australia and developing a vaccine for tetanus. The analysis is based on the FINC 5001 Capital Markets & Corporate Finance assignment from The University of Sydney, focusing on evaluating the company's financial health and growth prospects to determine its investment potential.

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Overview
CSL or Commonwealth Serum Laboratories Limited is a global vaccine
manufacturing company founded in 1916, known for their speciality in biotechnology sector.
In the current time period, they manufacture innovative biotherapies and vaccines for
influenza and other virus to save people from life endangering medical situations and the
other products includes antivenoms, blood plasma derivatives and cell culture reagents (CSL
2018). CSL’s main goal which drives their passion is to save millions of patients from serious
medical conditions so as to live full and healthy lives.
CSL’s main functions include research, innovation, production and marketing of
products that treats and prevents complex medical conditions. The products they manufacture
are used for various medical and genetic research and manufacturing functions. CSL’s
operations are mainly divided into two segments, which are CSL Behring and Seqirus. The
CSL Behring segment’s role is to provide plasma remedies for cure of blood disorders,
respiratory diseases, immunodeficiency, neurological disorders, hereditary disorders,
haemolytic diseases in newborns, infections in organ transplants and treating patients with
acute major bleeding. This segment also performs research work on plasma and non-plasma
remedies (CSL 2018). On the other hand, the Seqirus segment is associated with the
productions and distribution of non-plasma bio therapeutic medicines, vaccines mainly
related to influenza and Q fever, and antivenoms.
CSL’s main headquarters is in Parkville, Australia. CSL Behring segment has it’s
headquarter in King of Prussia, USA. Its manufacturing facilities are in Swiss city (Bern),
Marburg (Germany), and in Kankakee (USA). CSL Seqirus segment is headquartered in
Maidenhead, UK, and it has its manufacturing laboratories in Holly Springs (USA),
Liverpool (UK), and Parkville (Australia).

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In the year 1994, CSL Limited name was formed from the privatisation of
commonwealth facilities. The company with the aim of becoming global leader CSL doubled
its size by purchasing Swiss Plasma Company, ZLB Bioplasma and even purchased Aventis
Behring, a Germen based company in the year 2004.
In the year 1928 CSL faced their biggest tragedy under the directorship of Frederic
Morgan, also known as the 'Bundaberg tragedy', which involved the death of twelve children
due to wrong labelling of diphtheria toxin-antitoxin. In the year 1934 under the directorship
of Tom 'Pambo' Eades, CSL regained their status, when they started their research in
antivenoms.
Some of the major achievements of CSL limited are mentioned below:
 In the year 1923,CSL was the first producer of insulin for diabetic treatments in
Australia
 They developed a vaccine for the treatment of tetanus in the year 1938
 CSL produced a combined vaccine for the treatment of diphtheria, tetanus and
whooping cough
 In the year 1956, after the massive distribution of polio, CSL made their first priority
for the production of polio vaccine
 In between 1966 to 1967, they produced Rhesus (D) immunoglobulin, this medicine
has helped in the prevention of haemolytic disease due to incompatibility of RH factor
in new born babies
 In 1983, CSL set a pioneer by treating blood-plasma products by heat to prevent the
infection of HIV
 From 1994 to 2005, under the leadership of Professor Ian Frazer, CSL developed the
world’s first human papillomavirus vaccine

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Reference List
CSL, (2018). CSL . [online] Available at: https://www.csl.com/.