The CSL Ltd (ASX: CSL) share price is in focus after the company announced its plans to invest around $1.5 billion in manufacturing in the US.
CSL is Australia’s largest healthcare company, specialising in biopharmaceuticals and operates globally. It has a diverse portfolio of medicines including vaccines and other medicines that treat haemophilia, immune deficiencies, iron deficiency and more. The company has been operating in Australia since 1916 and now has a global network in over 100 countries.
CSL plans to invest $1.5 billion in the US
The company announced plans to expand its US presence with $1.5 billion invested over the next five years into manufacturing plasma-derived therapies. This investment will help CSL meet the growing need for immunoglobulin over the long term.
CSL’s planned investments are subject to approval by the board of directors.
The healthcare giant said that this investment will create hundreds of American jobs, strengthen US manufacturing capabilities of plasma-derived therapies (PDTs) and help secure the US medicine supply chain.
The CSL Chief Executive Officer and Managing Director Paul McKenzie said:
The US is the world’s leading source for plasma, the main component of plasma derived therapies.
These important medicines are often the most effective or only therapies available for many rare or serious diseases. By expanding our onshore production capacity in the US, we are deepening our commitment to patient care, creating high-quality jobs and driving innovation in the US.
Existing presence in the US
CSL has been growing its presence in the US and has invested over $3 billion into its US operations since 2018.
The company said that it has created over 6,500 American jobs in that time, with roles ranging from manufacturing to scientific innovation.
CSL’s total US headcount is more than 19,000. The company noted that its American employees represent around 65% of CSL’s workforce.
Final thoughts on the CSL share price
This investment seems to partly be in response to US tariff developments, with tariffs on pharmaceuticals having been under the spotlight in recent times.
It has been a tough year for the CSL share price, it has fallen more than 35% since the beginning of the year. The share price hasn’t been at this level for around seven years.
I don’t have a crystal ball to predict when CSL will hit the bottom and hopefully start recovering, there are other ASX growth shares that I have my eye on first because the US healthcare environment seems unpredictable.
