CSL delays spin-off, cuts profit outlook as US vaccination rates slide

Core Viewpoint - Australian biotech CSL has reduced its profit outlook and postponed the spin-off of its vaccine division due to a significant decline in U.S. flu immunization rates, resulting in a sharp drop in its share price to a near seven-year low [1][6]. Group 1: Financial Performance - CSL has cut its full-year revenue guidance to a growth range of 2% to 3%, down from the previous 4% to 5% [5]. - The company 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]. - Shares in CSL fell as much as 16.6% to A$176.23, marking their lowest level since December 2018 and the largest intraday drop since mid-August [6]. Group 2: Strategic Decisions - The planned spin-off of the Seqirus vaccines unit has been delayed amid "heightened volatility" in the U.S. market, where vaccination rates are projected to decline by 12% during the northern hemisphere winter season [3]. - The demerger is now anticipated to occur when market conditions are more favorable for maximizing shareholder value [6]. Group 3: Shareholder Sentiment - At CSL's annual meeting, investors expressed frustration over the company's declining share price, leading to a 42% protest vote against the executive pay packages for the second consecutive year [2][7]. - Despite the discontent, the board survived a spill motion during the meeting [2].