International blood plasma and vaccine company CSL will focus future investment on a range of specialty products to drive its profits higher and consider another $900 million share buyback.
CSL on Wednesday reported a 4.5 per cent rise in net profit for the 12 months to June 30 to $982.6 million from $940.6 million in 2010/11.
In US dollar terms, the currency CSL will report in from 2013, the results were even more impressive with the net profit after tax topping $US1 billion.
“We think that’s a very significant milestone for the company being our first $US1 billion profit achievement,” managing director Brian McNamee told reporters.
CSL’s Behring business contributed the lion share of CSL’s revenue with sales of $3.7 billion, representing 12 per cent growth, Dr McNamee said.
The star performers of the company’s portfolio were immunoglobulin products, which recorded 15 per cent growth and specialty products, which grew 18 per cent.
The two portfolios would be the main drivers of future growth, with CSL anticipating a 12 per cent rise in profit on a constant currency basis.
“The main drivers of growth are the immunoglobulin portfolios, so certainly Hizentra and Privigen,” Dr McNamee told AAP.
“We also believe some of the specialty products we have will also grow.”
A number of specialty products moving into the late stages of clinical trials hold promise, he said.
These include a plasma product to minimise adverse events and bleeding associated with surgery to repair or replace a torn aorta, one of the heart’s main arteries.
An antibody to treat rheumatoid arthritis and an injection that patients with the rare genetic disorder hereditary angioedema can administer themselves, were also among the stable of specialty products in development.
“We see our specialty products as a vital area to invest in over the years,” said Dr McNamee who will retire from CSL in July 2013 after 23 years at its helm.
Meanwhile, CSL is considering launching its another share buyback
Its current $900 million buyback is more than three quarters complete, and another one of the same size could be on the cards.
After completing the current buyback program, the board will consider new capital management initiatives which may include a further on-market share buyback program of up to $900 million.
“I’m pleased to foreshadow that following completion of the current buyback program the board will consider new capital management initiatives, which may include a further on-market share buyback program of up to $A900 million,” Dr McNamee said.
During 2011/12, CSL’s total revenue rose to $4.4 billion from $4.2 billion.
Investment in research and development was 13 per cent higher on a constant currency basis to $355 million.
The net profit result was hit by an unfavourable foreign currency exchange charge of $108 million as a result of the stronger Australian dollar.
CSL declared an unfranked final dividend of 47 cents a share, up from 45 cents previously.
Its shares closed 67 cents higher at $42.00.
