The CSL Ltd (ASX: CSL) share price has jumped 6% after the ASX healthcare share announced plans for new plasma manufacturing.
CSL is a major global biotech business that is involved in a number of treatments, vaccines and so on.
Clinical trials to evaluate enhanced plasma manufacturing
The company announced that it will undertake clinical trial work to confirm the efficacy and safety of immunoglobulin manufactured using its next generation Horizon 2 process.
CSL explained that Horizon 2 is a patented, yield-enhancing technology that enables significantly greater production of immunoglobulin from the same base amount of plasma.
After its engagements with the US FDA and European Medicines Agency (EMA), CSL will obtain clinical evidence to support and finalise the regulatory approval process for Horizon 2.
CSL’s advanced manufacturing processes are among several initiatives it continues to progress as part of an overall focus on operational efficiencies.
CSL said it expects clinical activities to commence in mid-2027, using material manufactured at CSL’s Broadmeadows facility. This will allow the clinical trial work to be undertaken at the same time as construction of the previously announced expansion of CSL’s Kanakee (in Illinois) manufacturing facility.
Is the CSL share price a buy?
CSL has fallen more than 50% in the past year. But, it has risen more than 30% since early June, so the market may be thinking that the worst is over.
I think it’s nearly always a good idea for a business to invest in its operations to be better or more capable in the future, as this can help protect and grow earnings in the long-term.
I’m not an expert on biotechnology, but it seems as though the business is not going to grow earnings as fast as expected for the foreseeable future, which of course makes things difficult for the CSL share price.
I think it’s good for the company to invest, but CSL may not be the growth stock it once was. Therefore, there are other ASX growth shares I think are better opportunities.
