Why the CSL (ASX:CSL) share price has rebounded 13% since March

The CSL Limited (ASX: CSL) share price is rebounding following recent developments. We take a closer look in what could be moving its shares.

| More on:
asx share price rebound represented by wooden blocks spelling rebound with coins on top

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 has been rebounding lately after hitting a 52-week low of $242.00 on 9 March. Since then, the company has gained 12.95%, with CSL shares currently trading at $273.35.

The global biotech has been busy producing the AstraZeneca COVID-19 vaccine while attempting to combat plasma collection concerns. Could this be the catalyst for its recent share price rise?

What's driving the CSL share price higher?

Investors appear upbeat about the company's progress to address its current issues as well as its attempts to open up new opportunities.

As announced on 14 April, CSL has been focused on increasing its plasma-protein production through its launch of a global challenge. The company is inviting members of the public to submit innovative ideas on how it can maximise its production of Human Immunoglobulins G (IgG). The person who wins will receive a $40,000 reward along with 1:1 mentoring sessions with CSL Behring.

CSL certainly appears to be thinking outside the box and actively pursuing creative programs to overcome its plasma concerns. This comes against the backdrop of a COVID-19-related reduction in the collection of plasma, which is vital for the company's production of life-saving therapies.

In more recent news, the Australian Government's push to locally manufacture mRNA coronavirus vaccines is gaining media attention. However, United States drug titan Pfizer has dashed any hopes of securing a licensing agreement to locally produce its COVID-19 vaccine here in Australia in the short term. The company said that it's focused on existing vaccine manufacturing facilities across North America and Europe.

However, this hasn't stopped the Victorian Government from pledging $50 million for a plan to create a local mRNA vaccine manufacturing ability in the future. This would protect national supply and eliminate shipment blocks such as the recent Italian fiasco. Developing such a capability could take less than a year, provided CSL was on board.

Currently, the Morrison government has placed an order for 40 million doses of the Pfizer vaccine which is expected to be fulfilled by the end of 2021. As the Pfizer vaccine trickles in, the doses will be distributed to people under the age of 50 years old. The AstraZeneca vaccine has now been allocated for use in patients over 50 years of age due to rare, blood-clotting side effects seen in some younger people.

So far, almost 1.8 million Australians have received their first jab of the COVID-19 vaccine. CSL is contracted to fill a government order of 50 million doses of the AstraZeneca vaccine. It hopes to achieve local production of 1 million vials per week.

Foolish takeaway

It's been an eventful 12 months for the CSL share price, which has moved in peaks and troughs across the period. The company's shares rose to a high of $322.75 last April, before falling to 2019 lows of $242.00 this year.

Year-to-date performance has seen CSL shares register a drop of just 4% due to an uptick in investor sentiment. Over a 12 month period, its shares have slightly improved to record a fall of around 11%.

As the ASX's third-largest company by market capitalisation, CSL is worth $123.22 billion.

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

Before you buy Nextdc 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 Nextdc 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

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 Healthcare Shares

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Up 114% in a year, why is the Pro Medicus share price leaping higher again on Thursday?

Pro Medicus shares are back in form today and leaping ahead. Here’s why.

Read more »

Two doctors give the thumbs up to an x-ray
Healthcare Shares

Buying the dip: $10,000 invested in Pro Medicus shares on 7 April is now worth…

This healthcare stock has boomed over the past month. 

Read more »

Two doctors wearing white coats look closely at a medical imaging x-ray as the share prices of ASX 200 healthcare shares improve in FY23
Healthcare Shares

Pro Medicus shares climb 33% in less than a month, have I missed the dip?

Pro Medicus shares have soared. Is it the right time to invest?

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX All Ords share just rocketed 19% on BIG news

Investors are sending this ASX All Ords share flying on Monday. But why?

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Healthcare Shares

Why is this ASX All Ords stock surging 14% today?

This stock is starting the week strongly. But why? Let's find out.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Healthcare Shares

Guess which ASX All Ords stock is rocketing 58% on big US news

What is getting investors excited today? Let's find out.

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

3 reasons to buy this quality ASX 200 healthcare share today

A leading expert expects this outperforming ASX 200 healthcare share will keep running hot.

Read more »

A woman reclines in a comfortable chair while she donates blood holding a pumping toy in one hand and giving the thumbs up in the other as she is attached to a medical machine to collect her blood donation.
Healthcare Shares

Brokers tip 4 ASX 200 healthcare shares to buy now

Healthcare is a defensive sector that can provide useful cover for investors when the market is volatile.

Read more »