CSL: Steady growth and diversified portfolio support underlying earnings

CSL has bought the exclusive worldwide rights (ex-Japan, Korea, Taiwan and Israel) to commercialise influenza treatment RAPIVAB (peramivir injection) from US Biotechnology company BioCryst Pharmaceuticals (BCRX- US; mkt cap US$955m). CSL will pay BioCryst US$33.7m upfront and US$12m if certain regulatory milestones are achieved. While we are a bit cynical on this vaccine licensing deal, it doesn’t detract from our main thesis. We continue to view the name favourably, with its core plasma therapy business delivering high single-digit growth and a diversified product portfolio supporting solid underlying earnings (3 yr CAGR c10%), strong cash flow and lowering risk from a maturing R&D pipeline. (CSL, Add, price Target A$101.73)