BREAKING: CSL Ltd (ASX: CSL) shares have plummeted by 28%, closing last week at $212.47. This alarming decline marks a significant downturn for the biotech giant, long considered one of the most reliable stocks on the ASX.
Investors are in a panic as short-term challenges weigh heavily on sentiment. The company, renowned for developing crucial plasma therapies and vaccines, has faced unexpected hurdles affecting its key CSL Behring division. Following its FY 2025 results, CSL reported solid revenue growth but fell short of expectations, prompting a sell-off among investors.
According to analysts at E&P, the gross profit shortfall was primarily driven by the US Medicare Pt D redesign, which led to a 1.9% decline in sales compared to an anticipated 1.0%. Additionally, the loss of several ex-US immunoglobulin tenders is projected to impact sales by 3-4% in FY 2026. The financial strain is compounded by lower margins due to these issues and increased investment in new projects.
Amidst these challenges, concerns surrounding the potential spin-off of CSL Seqirus, their vaccines business, and the impact of US pharmaceutical tariffs have further unsettled investors.
Despite the turmoil, CSL’s long-term growth outlook remains robust. Plasma collections are rebounding after pandemic disruptions, and demand for its therapies continues to rise globally. The company is investing heavily in next-generation facilities and a promising R&D pipeline to sustain its market leadership for decades.
Should investors seize this opportunity? For those with a long-term perspective, this significant pullback could represent a rare buying opportunity. CSL remains profitable and is regarded as one of the best-managed biotechs worldwide. Analysts at Macquarie are optimistic, maintaining an outperform rating with a price target of $275.20, indicating a potential upside of around 30% from current levels.
As market anxieties mount over short-term setbacks, patient investors may find themselves poised for long-term gains by purchasing CSL shares while they are trading at a notable discount.
This situation is evolving rapidly, and investors are advised to monitor developments closely. With CSL’s resilience historically proven, the coming weeks could reveal whether this plunge is merely a temporary setback or a more profound challenge for the biotech leader.
Stay tuned to our updates for the latest on this developing story.
