CSL (ASX:CSL) share price on watch after hints of 'far more robust' vaccine

Australian global biotech giant CSL Limited didn't win the sprint for a coronavirus vaccine. But it may lead the marathon.

| More on:
vials of medication labelled with COVID-19 vaccine stickers

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The CSL Limited (ASX: CSL) share price is edging higher today, up 0.2% in afternoon trading.

That's broadly in line with the wider S&P/ASX 200 Index (ASX: XJO), up 0.4% at time of writing.

With a history of generally delivering fairly steady share price growth, 2020 has been unusually volatile for CSL shareholders. While there are various reasons for this, traders jumping in and out of shares based on the latest COVID-19 vaccine news have certainly helped stir this year's share price volatility.

CSL and the University of Queensland (UQ) have been working collaboratively on a coronavirus vaccine since the outset of the pandemic.

The sprint to the finish line looks to have been won by the mRNA vaccines developed by Moderna Inc (NASDAQ: MRNA), along with the partnered efforts of Pfizer Inc. (NYSE: PFE) and BioNTech SE (NASDAQ: BNTX).

But the experts at CSL and the UQ believe their own efforts may prove more valuable in the long run.

More on that below. But first…

What does CSL do?

CSL is a global biotechnology company that develops and delivers innovative biotherapies and influenza vaccines.

CSL's operational business segments include CSL Behring and Seqirus. The company operates predominantly in Australia, the United States, Germany, the United Kingdom and Switzerland.

CSL shares first began trading on the ASX in 1994 and today it ranks among the largest companies on the ASX 200. At the current share price, CSL pays a 1% dividend yield, unfranked. The company paid out both dividends for 2020.

Why could CSL's COVID vaccine prove to be better?

Professor Paul Young is the head of the UQ program developing a COVID vaccine together with CSL.

Addressing their vaccine, Young said (as quoted by the Australian Financial Review):

It is a more traditional vaccine. I think it will be a far more robust vaccine . . . and a better option for the long term. So I still think it's an important vaccine even though we're a little bit behind the mRNA vaccines.

Data from the group's phase 1 trial is expected soon, with phase 2 and 3 trials scheduled to commence in December. Young said if the trials are successful, their vaccine could be ready for wider use in Australia by mid-2021.

Young also highlighted the historic shortage of medicinal manufacturing capabilities in Australia:

Our sovereign capacity is not perhaps what it could have been. Our technology has led into CSL's technology just beautifully. That was an excellent marriage. But, many of the other vaccine types that could have been developed in Australia haven't been able to progress because there hasn't been the infrastructure to take them into the next stage of development.

Although CSL is working on other projects and has numerous successes under its belt, the pending success or failure of its COVID vaccine is likely to have a significant impact on its share price.

Should you invest $1,000 in Freelancer Limited right now?

Before you buy Freelancer Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Freelancer Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

The letters ETF with a man pointing at it.
Share Market News

3 fantastic ASX ETFs to buy with $1,000

These funds could be worth considering if you have money to invest in the share market.

Read more »

Businessman smiles with arms outstretched after receiving good news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a wonderful Wednesday session for investors today.

Read more »

Two male ASX 200 analysts stand in an office looking at various computer screens showing share prices.
Broker Notes

Macquarie tips 20% upside for this ASX 200 industrials stock

Let's see what the broker is saying about this stock following an update.

Read more »

A man with a wide, eager smile on his face holds up three fingers.
Gold

3 reasons this ASX 200 gold mining giant could soar higher into 2026

A leading expert forecasts more outperformance from this surging ASX 200 gold stock.

Read more »

A young woman lifts her red glasses with one hand as she takes a closer look at news about interest rates rising and one expert's surprising recommendation as to which ASX shares to buy
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Bank Shares

CBA shares hit a new $176 record high. Too late to buy?

What can stop this bank now?

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why James Hardie, Mayne Pharma, Nufarm, and Resimac shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Share Gainers

Why Adriatic Metals, Catapult, Seek, and TechnologyOne shares are racing higher today

These shares are having a good time on hump day. But why?

Read more »