CSL sees greying population as saviour in Ozempic battle

afr.com:

Biotechnology giant CSL argues an ageing population will help shield its business from any fallout from the explosion in Ozempic-style drugs used off-label to treat weight loss, and potentially undermining its investment in therapies targeting kidney disease.

The wide variety of risk factors linked to heart attacks and kidney disorders should support CSL’s expansion beyond plasma processing where it is historically dominant, it assured the market on Monday, after investors started fretting about the impact of a surge in use of GLP-1 drugs like Ozempic.

CSL CEO Paul McKenzie pictured in Sydney on Monday. Dion Georgopoulos

“We do not see GLP-1s as having a material impact on the business,” CSL chief executive Paul McKenzie said. CSL shares fell 0.6 per cent to $239.90.

CSL also outlined trialling inverse Uber-style pricing for blood plasma donors in the US, rewarding them for attending collection centres in off-peak times, and its ambitions to boost influenza vaccine sales.

The plans were outlined at an investor day for CSL, a $116 billion company that is one of Australia’s big biotechnology growth stories, evolving from a government-owned enterprise established in 1916 to having 30,000 staff delivering products in more than 100 countries.

But the shine has worn off lately with margins in blood collection centres under pressure and rivals planning to launch generic drugs against its iron deficiency product, Ferinject.

Another blow came last week when Novo Nordisk halted a study early because the efficacy of Ozempic in treating kidney disease was immediately apparent.

“We think this could be a potential negative catalyst on CSL. CSL Vifor has a joint venture with Fresenius Medical Care, with 45 per cent of Vifor revenue