CSL reshapes R&D while bracing for U.S. tariffs

Australia’s largest biotech company CSL is streamlining its R&D operations to enhance efficiency amidst a rapidly evolving global landscape.

The company aims to optimise its internal capabilities and forge external partnerships to improve its R&D pipeline. This strategic shift will entail consolidating internal teams and R&D teams. Details on the extent of the workforce impact will be disclosed during the company’s upcoming annual earnings report in August.

CSL faces challenges from increased tariffs amidst threats from US President Donald Trump. As a major exporter of pharmaceuticals to the US, CSL is particularly vulnerable. CSL Plasma operates an extensive network of nearly 350 plasma collection centres worldwide, with significant operations in the US.

The company’s US operations employs 19,000 staff, comprising 60% of its workforce. While most blood products are processed in the US, some are sent back to Australia for the manufacture of therapies targeting rare and life-threatening conditions.

Concerning the tariff implications, CSL warns that such measures could escalate costs for patients and potentially restrict access to vital therapies. The company has announced a substantial $2 billion investment in expanding production facilities in the US, though the full impact will materialise over several years.

CSL is advocating for a nuanced approach by the US Department of Commerce in its assessment of pharmaceutical imports’ impact on national security. The company is urging a focus on non-allied countries rather than long-term trading partners, like CSL, emphasising the importance of maintaining reliable international collaborations.

CSL operates through key divisions including CSL Behring, encompassing CSL Plasma; CSL Seqirus; and CSL Vifor. CSL Behring specialises in rare and severe conditions such as bleeding disorders, immunodeficiencies, and neurological disorders. CSL Seqirus focuses on vaccines, while CSL Vifor addresses areas like iron deficiency and nephrology.

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