Australian plasma and vaccine specialist CSL posted signs of a meaningful recovery on Tuesday after a turbulent year marked by impairments, revenue downgrades, and an executive shakeup.
The company’s fiscal 2026 report projected mid-single-digit growth for its largest division, CSL Behring, in the 2027 period, reversing a year in which Behring sales fell 1% to $11.1 billion.
That projection falls short of the double-digit growth CSL Behring achieved in FY24 and FY23, but investors appeared encouraged by the directional shift after months of disappointing updates.
The primary driver behind the improved outlook is a recovery in the immunoglobulin market, where CSL now expects mid-to-high single-digit sales growth following a flat prior year.
Just three months ago, CSL had cut its FY26 immunoglobulin sales projection in the United States by $300 million, citing excess inventory as the cause of the market disruption.
On Tuesday, the company reported that immunoglobulin demand increased by 7% year over year, offering a stark contrast to the grim picture painted at its most recent quarterly update.
CSL also flagged continued momentum for Andembry, its hereditary angioedema treatment, which delivered $240 million in sales during the fiscal year, exceeding the company’s own expectations.
The FDA approved the monoclonal antibody in June of last year, following earlier clearances in Europe, Japan, and the United Kingdom, broadening the drug’s commercial reach significantly.
Overall sales came in at $15.8 billion, matching the company’s earlier full-year guidance before it was slashed from $15.8 billion to $15.2 billion in May, a cut that triggered a 16% collapse in the share price at that time.
Investors responded sharply to the better-than-feared results, sending CSL shares up more than 17% on Tuesday morning as confidence in the company’s trajectory appeared to return.
Interim CEO Gordon Naylor, speaking on a conference call, said “I’m pleased to report in the intervening weeks, we’ve been able to maintain momentum to stabilize the company’s performance, restore the cadence and focus of the leadership team and start to deliver results,” describing FY26 as a “reset year.”
Naylor, who stepped in following the abrupt departure of three-year CEO Paul McKenzie, Ph.D. in February, also confirmed he is not a candidate for the permanent chief executive role.
He noted that the “actions that put us back on the path to sustainable growth started well before my appointment,” referencing a 15% workforce reduction that CSL announced in September of last year.
A persistent drag on the business remains the 2022 acquisition of Swiss iron deficiency and kidney disease specialist Vifor Pharma, purchased for $11.7 billion, which has continued to deteriorate in value.
The bulk of the $7.1 billion in impairment charges recorded across FY26 are attributed to Vifor, with CSL projecting the unit’s sales will decline by a further 25% in FY27.
Naylor cited several headwinds weighing on Vifor, including the European Union’s decision to revoke the marketing authorisation for Tavneos, a rare disease drug developed in partnership with Amgen.
Generic competition in both the United States and Europe for iron products has also taken a toll, with CSL’s iron sales falling 16% in FY26, compounding the challenges facing the troubled division.