Although it is trading lower today after going ex-dividend, the CSL Limited (ASX: CSL) share price has been in fine form again in 2019.
Since the start of the year the biotherapeutics company's shares have gained a sizeable 26.2%.
This has stretched the company's three-year share price gain to a massive 130%.
Why is the CSL share price up 26% in 2019?
Investors have been scrambling to buy the company's shares again this year after it delivered another strong result in FY 2019.
For the 12 months ended June 30, CSL posted an 11% increase in revenue to US$8,539 million and a 17% jump in net profit after tax to US$1,919 million.
One of the key drivers of this strong growth was its Immunoglobulins product range. Sales of immunoglobulins grew at an above-market rate of 16% to US$3,543 million thanks to a combination of factors including increased usage for chronic therapies, growing awareness and diagnosis, and the expanding usage for secondary immunodeficiency.
This was supported by a 6% lift in Speciality sales due to high patient demand for its Haegarda and Kcentra products and a 15% jump in Albumin sales thanks to strong growth in China in the second half.
This ultimately led to the key CSL Behring business reporting an 11% increase in total revenue to US$7,343 million during the 12 months.
The market will no doubt have been impressed with the performance of its fledgling Seqirus influenza vaccine business. The Seqirus business posted a 12% increase in total revenue to US$1,196 million due to strong demand for its seasonal influenza vaccines.
Outlook positive.
Also supporting its strong share price gain this year has been management's guidance for the year ahead.
Despite the one-off headwinds associated with its transition to a self-distribution model in China, management is confident of solid profit growth in FY 2020.
It has provided revenue growth guidance of 6% and net profit after tax growth guidance of 7% to 10% in constant currency term in FY 2020.
Should you invest?
Whilst its shares look reasonably expensive after this strong gain, I believe this premium is justified due to the quality of the company and its strong long-term growth potential thanks to increasing demand and its lucrative development pipeline.
Overall, I continue to class its shares as a great buy and hold option along with fellow healthcare stars Cochlear Limited (ASX: COH) and ResMed Inc. (ASX: RMD).
