Australia's CSL delays spin-off as US flu vaccine rates decline

Core Viewpoint - Australian biotech CSL has delayed its planned spin-off of its vaccine division, CSL Seqirus, and cut its earnings forecasts due to a significant decline in U.S. flu vaccination rates, resulting in a share price drop of up to 16.6% [1]. Group 1: Spin-off and Restructuring - CSL had previously announced plans to spin off CSL Seqirus into a listed entity by June 2024 as part of a broader restructuring plan that included cutting 3,000 jobs [1]. - The demerger will now occur when market conditions are favorable for maximizing shareholder value, as stated by the company [7]. Group 2: Earnings Forecasts - The company has revised its full-year revenue guidance to a growth range of 2% to 3%, down from the previous 4% to 5% for the financial year ending in June 2026 [4]. - CSL now expects annual net profit after tax and amortization (NPATA) to increase between 4% and 7%, a reduction from the earlier forecast of 7% to 10% growth on a constant currency basis [5]. Group 3: U.S. Vaccine Market Challenges - CSL's CEO noted a greater-than-expected decline in U.S. influenza vaccination rates, despite a positive recommendation from the U.S. administration and a significant public health impact from infections [3]. - The U.S. vaccine market is facing headwinds, including funding cuts for vaccine research and leadership changes at the CDC, which could further impact vaccination rates [3][4].