CSL Limited (ASX: CSL), one of Australia’s leading biotechnology firms, has seen its share price tumble following U.S.
President Donald Trump’s announcement of a 100% tariff on imported branded pharmaceuticals, effective October 1, 2025.
Investors reacted sharply, concerned about the potential impact on CSL’s operations in the U.S. market.
While CSL emphasized that its significant U.S. manufacturing presence would help mitigate the effects of the tariffs, the announcement nonetheless triggered a major drop in market value.
The tariff decision also rattled the broader Australian pharmaceutical sector, with several companies reporting declines in their stock prices.
Adding to the pressure on CSL, the company recently announced a major restructuring plan.
This includes the demerger of its vaccine division, CSL Seqirus, and the reduction of approximately 3,000 jobs, representing a significant portion of its global workforce outside of its U.S. plasma operations.
The restructuring aims to streamline operations, reduce costs, and improve long-term profitability, but the news initially unsettled investors.
CSL’s financial outlook also contributed to the decline. Despite reporting a 14% increase in underlying profit for FY25, the company’s guidance for FY26 projects revenue growth of only 4–5% and NPATA growth of 7–10%, falling short of analyst expectations.
Slower growth in plasma collection and softer vaccine profits, especially in the U.S., have added to investor caution.
Analysts remain divided on CSL’s prospects. Some highlight concerns over external pressures and strategic shifts, while others see the recent share price decline as a potential buying opportunity, citing the company’s strong fundamentals and extensive global footprint.
As the biotech giant navigates these challenges, the combined effects of trade policy changes and internal restructuring will be closely watched by investors and industry stakeholders alike.
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