CSL (ASX: CSL) has a long and proud history of developing therapies to improve patients' lives. This week CSL announced promising results from "clinical studies involving a new group of therapies for the treatment of haemophilia".
One of the beauties of CSL's business model has been the company's ability to innovate therapies, through research and development, which improve upon and expand upon its current sales base. CSL has for many years provided blood plasma products to treat hemophilia so news of a potential new therapy for bleeding disorders (including hemophilia) and the associated development have low business risks given CSL already knows the market well and services it extensively.
Another firm which also has a similarly low-risk business model is implantable hearing device company Cochlear (ASX: COH). Cochlear is continually innovating improvements to its products, which effectively value adds to its current customer base.
The quality of these two firms' business models has been reflected in their share prices, with CSL and Cochlear up 84% and 37% respectively over the past five years. In comparison the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) is down around 4% over the same period.
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Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.
