17/04/2024 09:35

ResMed (RMD) versus CSL Ltd (CSL)

The Australian Healthcare is trading at a ~70% premium to the ASX 200 on a 1-year forward PE, which is close to its recent normal; hence, we are considering switching with the sector as opposed to outright buying or selling. RMD & CSL are two very different healthcare businesses, although both suffered in 2023 at the hands of Ozempic et al.. In both cases, the sell-off was over-blown in our opinion, but that’s the nature of stocks when the crowd runs as one.

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28/03/2024 09:41

CSL Ltd (CSL) $286.35

CSL experienced a  tough February after announcing that it was abandoning plans to seek regulatory approval for a Phase 3 trial for a cardiovascular medication, leaving CSL in need of a new/fresh growth catalyst. The drug wasn’t expected to significantly contribute to near-term earnings, but the trial was set to cost ~$850mn, and more importantly, a future growth runway has been removed.

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14/02/2024 09:11

CSL Ltd (CSL) $282.25

CSL fell another -2.8% on Wednesday, taking its pullback to almost 8% in just 48 hours after announcing it had abandoned an expensive Phase 3 trial for a cardiovascular medication on Monday and then disappointing investors after downgrading its Vifor iron deficiencies and kidney disease outlook on Tuesday. CSL is a quality operator, but at what price is the key question for this blood plasma giant whose shares have rotated in the $320 and $230 area for the last few years, i.e. buying strength has detracted from portfolio performance.

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13/02/2024 09:23

CSL Ltd (CSL) $290.24

CSL shares fell almost 5% on Monday, a big move for this $140bn blood plasma giant, after it announced that a Phase 3 trial for a cardiovascular medication had “come up short”. The company has abandoned short-term plans to seek regulatory approval, leaving CSL to deliver a new/fresh growth story.

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09/02/2024 09:31

CSL Ltd (CSL) $303.15

CSL has enjoyed a stellar recovery in a similar fashion to RMD after being sold off on fears around the much-publicised new weight loss drugs. CSL is a quality, well-owned company with valuation as our main concern

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21/11/2023 09:26

CSL Ltd (CSL) $257.62

CSL has been one of the sector losers through 2023, with “wonder weight loss drug” Ozempic weighing in the stock in October even though only ~8% of its earnings are exposed

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07/11/2023 09:15

CSL Ltd (CSL) $248.22

CSL struggled through September & October on concerns around earnings in its Vifor nephrology and dialysis (kidney disease treatment) business impacted by the “Ozempic revolution”.

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13/10/2023 09:46

CSL Ltd (CSL) $238.24

CSL grabbed the headlines for the wrong reasons on Thursday as the stock plunged over 6% as further damage was inflicted on the ASX Healthcare Sector by GLP-1’s (diabetes drug), ResMed has already illustrated over recent weeks the market appetite for uncertainty around this “wonder drug”. The market favourite plunged to 4-year lows, over -30% below its 2020 high, with around 8% of CSL’s earnings in its Vifor business’s nephrology and dialysis (kidney disease treatment) potentially impacted by Novo Nordisks study, which many see changing the global obesity problem.

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12/10/2023 16:41

CSL Ltd (CSL) $238.24

CSL -6.3%: the GLP-1 troubles that have plagued ResMed (RMD) over the last month have also put pressure on the biopharma company, sending the stock to 4-year lows today. Novo Nordisk is currently trialling their GLP-1 drug on chronic kidney disease (CKD) and Type 2 Diabetes (T2D) with a 5-year study expected to be completed late next year.

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12/09/2023 09:29

CSL Ltd (CSL) $268.57

CSL led the Healthcare Sector lower with many of its peers following suit including Ramsay Healthcare (RHC) and ResMed (RMD) that we hold in our Flagship Growth portfolio, we are deliberating switching our RMD position to CSL as markets become fixated on Ozempic’s cure to obesity and the impact this may have on sleep apnea treatments.

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