CSL share price climbs as $16 billion Vifor acquisition becomes effective

CSL shares are in the green on Tuesday…

| More on:
Medical technicians wearing white medical coats conduct a test in a laboratory.

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

Key points

  • CSL shares climb in early trading as the company completes its Vifor Pharma acquisition 
  • The company completed its acquisition after a lengthy delay
  • CSL will hold a dedicated market briefing on 17 October, discussing Vifor Pharma’s business model and financials

The CSL Limited (ASX: CSL) share price is edging higher following the completion of the company's latest acquisition.

In earlier trading, shares in the global biotech reached $298.49, up 0.96% on yesterday's closing price. They have since fallen back to $295.70, up 0.02%.

In contrast, the S&P/ASX 200 Index (ASX: XJO) is hovering 0.03% down at 7,018 points.

CSL adds Vifor Pharma to its books

After receiving all the required regulatory clearances last week, CSL has effectively taken over Vifor Pharma AG.

The acquisition comes after CSL announced a lengthy delay back in May due to some antitrust issues.

However, with the deal now settled, CSL currently holds more than 97% of Vifor shares. At the same time, these shares will soon be removed as management will apply to delist them post-close.

The remaining 3% os stock is expected to be cancelled in accordance with Swiss takeover rules.

With the $16 billion deal completed, CSL has access to Vifor Pharma's iron deficiency, dialysis, and nephrology & rare products divisions.

CSL's upcoming results are scheduled to be released on Wednesday 17 August. Of course, they won't include any earnings from Vifor Pharma.

However, adding a global pharmaceuticals company will undoubtedly boost CSL's financial profile in the H1 FY23 period.

CEO of Vifor Pharma Abbas Hussain commented:

…I am full of confidence that Vifor Pharma will have a successful future as part of a larger, global organization. This will allow us to accelerate growth and to successfully drive multiple product launches as we continue to help even more patients around the world live better, healthier lives.

It's worth noting that CSL will hold a dedicated market briefing on 17 October. Management will discuss Vifor Pharma's growth strategy and provide insights into its product portfolio as well as its financials.

CSL share price review

Following a broader recovery on the ASX, the CSL share price climbed 2.7% in the past month.

When looking at year-to-date, CSL shares are down 0.09%.

CSL is the third-largest company on the ASX. Its market capitalisation is $142.41 billion.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended 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 Scott Phillips.

More on Healthcare Shares

Two lab workers fist pump each other.
Healthcare Shares

Is it time to cash in on Sigma shares?

Shares have extended after the Chemist Warehouse merger.

Read more »

Person holding Australian dollar notes, symbolising dividends.
Healthcare Shares

Buy this ASX 200 share that is swimming in cash

Bell Potter sees potentially big returns on offer from this cashed-up stock.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

Are CSL shares a buy after the biotech's FY25 forecasts?

Brokers continue to weigh in.

Read more »

Female pharmacist smiles with a digital tablet.
Healthcare Shares

Are Wesfarmers or Sigma shares a better buy in the pharmacy arena?

These two stocks are both leaders in the industry.

Read more »

A young man goes over his finances and investment portfolio at home.
Healthcare Shares

Down 20%, is the NIB share price undervalued?

Here's what Goldman Sachs is saying about this blue chip stock.

Read more »

four excited doctors with their hands in the air
Healthcare Shares

Sigma Healthcare shares rocket 39% on Chemist Warehouse merger approval

The ACCC doesn't believe the company's merger with Chemist Warehouse will lessen competition.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

ASX 200 healthcare stock rockets on $75 million news

This marks another positive step for the company.

Read more »

Male doctor in a lab coat working at laptop looking serious.
Healthcare Shares

CSL shares are in the red for 2024. Are they a buy?

Meanwhile, the broader market has extended to new highs this year.

Read more »