CSR LIMITED

CSR Limited



CSR Limited

Brief summary of the company's activities

CSL Limited makes revenues from three different segments: plasma products developed, made, and marketed by CSL Behring (human plasma is culled from a network of collection centers in the US and Germany through CSL Behring's subsidiary CSL Plasma); other human health products, including those developed and made by CSL Biotherapies; and intellectual property licensed to third parties. Although the group's research and development, manufacturing, sales, and distribution operations are spread throughout the world, it operates predominantly in four geographic areas, namely Australia, Germany, Switzerland, and its largest market, the US (Plunkett 2009, 500).

CSL Behring is the company's largest segment, with immunoglobulins (used to treat infections and autoimmune diseases) showing the most growth across that subsidiary's product portfolio. Privigen, an intravenous immunoglobulin for patients with primary immune deficiency, is one of its leading products. Other approved products include therapies for haemophilia and coagulation disorders, hereditary angioderma, and inherited respiratory disease.

CSL Biotherapies runs one of the world's largest manufacturing facilities for producing influenza vaccines. Using the same technology its uses to produce seasonal flu vaccines, CSL manufactures a pandemic H1N1 swine flu vaccine called Panvax. Sales are achieved through supply contracts with Australia, Canada, Germany, Singapore, and the US. A portion of the vaccine was also donated to the World Health Organization (CSL Limited 1997, 14-36).

CSL has established and continues to maintain strong research and development operations. It has long-standing partnerships with other companies and academic institutions in Australia, Asia, Europe, and North America. It is also capable of manufacturing complex R&D biopharmaceuticals and overseeing the safety profiles of its products. CSL's strategy is to build an R&D portfolio of candidates particularly in the areas of coagulation, immunology, inflammation, and oncology (Plunkett 2009, 500).

Background information of CSL Limited

CSL limited engaged in biotechnology activities cover a large range. On one end are small, dedicated biotechnology companies that are research and development (R&D) intensive and operate primarily with venture capital, grants, initial public offerings and collaborative agreements. On the other end are large, diversified companies with significant in-house R&D resources and well-established production, commercialization and distribution processes (Plunkett 2009, 500).

IBISWorld estimates that Global Biotechnology industry revenue will reach $203.4 billion in 2011, having increased at an average rate of 10.9% per annum over the five years to the end of 2011. Growth in 2011 is expected to continue its recovery at 11.1%. This follows a relatively modest 8.8% rise in 2009 as the global recession eroded demand for non-essential health products and easing fuel prices tempered the biofuels craze. The greater effect of the global recession on the industry in 2009, however, was the reluctance of private investors to provide capital as the collapse in stock prices prompted increased risk aversion. This investor reluctance eased in 2010, although investors will remain highly sensitive to any economic weakness. Any prolonged lack of funding would result in reduced R&D spending, which, if not reversed, will jeopardize the industry's future revenue growth (CSL Limited 1997, ...