Australia’s largest biotechnology firm, CSL Limited, has announced a substantial investment of $1.5 billion to enhance its manufacturing capabilities in the United States. This initiative aims to increase the production of therapies derived from blood plasma collected within the country. The investment is part of CSL’s strategy to solidify its presence in the US market, which is known for being the world’s leading source of plasma.
This significant financial commitment, amounting to approximately A$2.3 billion, comes in the context of recent threats from former President Donald Trump regarding potential tariffs on pharmaceutical imports. In late September, Trump indicated that a 100 percent tariff could be imposed unless companies established manufacturing plants in the US. Although these tariffs were not enacted on the suggested October 1, 2023 deadline, the US Commerce Department has initiated an investigation into possible import levies.
CSL’s announcement, made late on a Tuesday evening, did not address the tariff situation directly. Instead, it emphasized the expected creation of “hundreds of high-quality American jobs” over the next five years. Paul McKenzie, CEO and Managing Director of CSL, highlighted the importance of expanding onshore production capacity. He stated, “The US is the world’s leading source for plasma, the main component of plasma-derived therapies. These important medicines are often the most effective or only therapies available for many rare or serious diseases.”
The new investment will complement CSL Behring’s existing blood plasma fractionation facility located in Kankakee, Illinois. While CSL has not confirmed the location of the new plant, it aims to strengthen its production capabilities in the US. The company has invested approximately $3 billion in the country since 2018, resulting in the creation of 6,500 new jobs and bringing its total US workforce to nearly 19,000, which constitutes about two-thirds of CSL’s global workforce.
CSL’s business model is particularly reliant on the unique legal framework in the US, where it is permissible to compensate individuals for their blood plasma donations. This practice allows CSL to produce life-saving therapies for patients dealing with bleeding disorders, immune deficiencies, and those recovering from trauma or burns.
As CSL continues to expand its operations, its commitment to patient care and innovation remains a focus. The company’s shares were trading at approximately $180 on the Australian Securities Exchange on the day of the announcement, reflecting a dynamic interest in its ongoing developments.
