Are COVID-19 vaccine worries affecting the CSL (ASX:CSL) share price?

The CSL Limited (ASX:CSL) share price has been falling in 2021. Let's look at whether vaccine concerns are adding to the biotech's woes.

| More on:
Medical asx share price fall represented by worried looking patient awaiting vaccine injection

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

Investors may be anxious that the CSL Limited (ASX: CSL) share price could fall further on current COVID-19 vaccine worries. This comes as several European countries recently suspended the use of the Oxford-AstraZeneca vaccine after receiving reports of individuals developing blood clots.

Below we take a look at whether concerns over the vaccine could be impacting the CSL share price.

Is the COVID-19 vaccine safe?

According to AstraZeneca, around 17 million people have been vaccinated with its product across Europe and the United Kingdom. While some mild side effects are expected such as tiredness and aching muscles, a reported 37 people formed blood clots. In addition, there were 15 cases of deep vein thrombosis, and 22 cases of pulmonary embolism.

Overall, the Oxford-AstraZeneca vaccine has proved relatively safe when comparing these cases against the overall larger group. However, a number of European countries such as Germany, France, Italy, Sweden, Spain and others have paused administering the vaccine.

These nations called for an assessment from the European Medicines Agency (EMA) to see if there was a link between the vaccine and the reported side effects. So far, the EMA has found no evidence and looks set to recommend the continued rollout of the Oxford-AstraZeneca vaccine.

At home, Australia is pushing ahead to distribute its current stockpile of COVID-19 vaccines. The government has secured an order of 3.8 million doses which is set to be fulfilled in early 2021, with over 226,000 doses having already been administered. The other 50 million doses will be manufactured in Melbourne by CSL on behalf of AstraZeneca.

How important is this to CSL?

Interestingly, analysts have stated that CSL's vaccine deal won't deliver any meaningful earnings for the company when compared to other biotech companies. This is because CSL's exposure to vaccines is considered quite low against its other performing business units. In its FY21 half-year results, CSL's pandemic business contributed just $77 million in revenue to the group's entire $5,739 million.

Furthermore, the company noted that the production of 50 million doses will not have any significant material impact on future revenue.

CSL shares have been hammered since late 2020 due to weak investor confidence. But nonetheless, the business still continues to grow at an impressive rate, up 15% on revenue from H1 FY20 to H1 FY21. As such, it seems market fear is the primary force continuing to weigh down its shares.

CSL share price performance

Over the past 12 months, the CSL share price is down around 5%, and almost 10% year to date. The company's shares reached a 52-week high of $332.68 last April before hitting a recent low of $242.00 this month.

Aaron Teboneras owns shares of CSL Ltd. 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

A young man punches the air in delight as he reacts to great news on his mobile phone.
Broker Notes

These ASX 200 shares could rise 30% to 50%

Brokers have good things to say about these cheap shares.

Read more »

Man jumps for joy in front of a background of a rising stocks graphic.
Share Market News

Record CBA share price and Iran-Israel ceasefire lift ASX 200 financials to new peak

ASX financial shares led the 11 market sectors last week, gaining 1.82% and reaching a record high.

Read more »

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Broker Notes

10 Aussie stocks to buy in FY 2026

Let's see which shares analysts think could be buys in the upcoming financial year.

Read more »

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing end to the trading week for investors this Friday.

Read more »

A young boy points and smiles as he eats fried chicken.
Share Gainers

3 ASX All Ords shares smashing the benchmark this week

Investors are sending these three ASX All Ords shares rocketing 18% to more than 29% this week. But why?

Read more »

watch
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why APA, Flight Centre, Reece, and Transurban shares are falling today

These shares are having a tough finish to the week. But why?

Read more »