CSL Limited

CSL Limited (CSL) is a major international biopharmaceutical company and develops, manufactures, markets and distributes biopharmaceutical and allied products in various countries around the world. Geographic segments include, the US, Germany, Australia, Switzerland, and other countries. The bulk of its sales are derived from the pharmaceutical and bioplasma divisions.

Ethical Update

CSL’s Environment rating from EcoInvestor has been increased from 4 to 5 stars. The company has also published its first Corporate Responsibility report detailing significant improvement in its environmental performance, particularly in its energy and water use.

With a focus on the development and production of vaccines and blood related products, CSL is at the forefront of responding to increasing health demands. CSL recognises the importance of ensuring a standard of company ethics, with its own ethics code.  It also abides by the various industry codes, such as, Code of Conduct of the Australian Pharmaceuticals Manufacturers Association, the Code of Good Manufacturing and Code of Good Laboratory Practice.

However it is not all good news. CSL is facing claims that it has undue influence over the Australian Government which has blocked the rollout and funding of more advanced flu vaccines on the Australian market. The Company has historically advised the director of health and the minister on policy, including vaccine purchasing policy. However, the impartiality of this advice is questioned given the Company develops and manufactures the Government-subsidised flu vaccines. These criticisms have been dismissed by both the Company and the Australian Government.

 Authorities in Australia have halted the distribution of the Company’s influenza vaccines to children under five years of age after the vaccine was linked to several severe reactions in toddlers and children under five. Investigations are continuing.(Source: Ethical Investor June 2010)

Financial Update

Estimated Dividend Yield: 2.70%

Franking: 11%

1 Year Performance: -0.8%

Last Price  (23 August 2010): $31.27 

Fair Value:  $36.40

Financial figures are as at 23 August 2010 and are subject to change (Source: Morningstar).

Disclaimer

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