CSL Limited (ASX: CSL) has revealed that it will manufacture and supply COVID-19 vaccines to Australia.
CSL’s COVID-19 manufacturing agreements
The biotech announced this morning that it has signed two deals for two separate COVID-19 vaccines.
CSL has signed a deal with the Australian Government to supply 51 million doses of the University of Queensland vaccine to Australia, with the first doses scheduled for release from mid-2021 following successful clinical trials.
CSL has also signed a deal with the UK biotech giant AstraZeneca for the expected manufacture of approximately 30 million doses of the Oxford University vaccine candidate AZD1222 for supply to Australia with the first doses scheduled for release in early 2021, following successful clinical trials.
The healthcare giant also said that a funding deed has been signed between the Australian Government and CSL to ready its facilities for the manufacture of the Oxford University vaccine candidate and provide an additional COVID-19 vaccine option for Australians.
Management comments
CSL CEO and Managing Director Paul Perreault said: “The social and economic impact of the COVID-19 pandemic has brought a high level of urgency to the task of developing a vaccine against the SARS-CoV-2 virus, and to manufacture a successful vaccine at high quality and insufficient quantities.
“CSL has been working at pace to respond to the pandemic and has invested significant resources in the rapid development and large-scale manufacture of UQ-CSL V451, along with a number of other therapeutic programs. Together with partners including the University of Queensland and Coalition for Epidemic Preparedness (CEPI), our development and manufacturing teams have been working extremely hard to advance this program to ensure the availability of a safe and effective vaccine should clinical trials prove successful.”
Summary
CSL said this announcement showed the Australian Government acknowledged that it’s the only company in Australia capable of producing the vaccine.
The deal is to ensure onshore COVID-19 vaccine production and supply. CSL said that its facilities will need modifications to manufacture the vaccine.
Whilst CSL didn’t label this announcement as price sensitive, I think if it ends up producing a successful vaccine in Australia then it will be ‘price sensitive’ for the whole economy, and very positive. Life may be able to return to somewhat(?) normal.
CSL is one of the few ASX blue chips I’d be willing to hold in my portfolio, though I like other ASX growth shares more like Pushpay Holdings Ltd (ASX: PPH).
